Brexit spectre looming large for Scottish firms

Report finds EU exit is moving up agenda for companies

The impact of Brexit is weighing more heavily on Scottish firms.

Bank of Scotland’s latest business barometer for August saw a marginal uplift to 19% in the net balance of Scottish firms who said they were concerned about the negative impact on their business forecasts of the UK’s impending exit from the European Union.

The break point comes in March next year and last week the UK Government issued guidance documents for the business community to aid planning in the event of a no deal Brexit.

The move was not universally welcomed, with some firms saying it only added to the confusion over the issue.

Hann-Ju Ho, senior economist with Lloyds Bank commercial banking unit, said Brexit’s impact was being felt.

“Business confidence was resilient in the first half of the year, but has eased back recently.

“This reflects changes in perceptions of Brexit risks, which underscores the importance of current EU-UK negotiations,” he said.

The wider survey findings showed overall business confidence was steady in Scotland last month.

However, the study’s economic optimism measure fell by seven points to 9% and firms’ confidence in their own business prospects also moved six points lower to 31%.

Fraser Sime, regional director for Scotland at Bank of Scotland, said: “To see overall confidence holding firm demonstrates the continued resilience of Scottish businesses during uncertain times.”

“In an evolving economic and political environment, firms should continue to seek trusted advice and optimise working capital.”

To see overall confidence holding firm demonstrates the continued resilience of Scottish businesses during uncertain times. FRASER SIME, BANK OF SCOTLAND