Larger firms in Highlands fear Brexit vote impact

LARGER companies in the Highlands and Islands fear shrinking labour markets in the wake of the Brexit vote, a survey has shown.

And businesses in the Highlands and Islands have reported a decline in confidence about the Scottish economic outlook.

In spite of these worries, the survey of 1,004 businesses by Highlands & Islands Enterprise (HIE) shows 82 per cent have achieved good or steady performance over the past 12 months.

HIE said: “Larger companies… expressed concern over potentially shrinking labour markets following the UK’s departure from the EU.”

It noted 57 per cent of larger businesses, with 25 or more employees, and 55 per cent of tourism providers had stated free movement of people across the EU was important.

The HIE business panel survey report states: “In areas where there was a perceived labour shortage, some businesses were dependent on workers from elsewhere in the EU.

“While not a dominant view among businesses, those that did depend on EU workers were concerned about the reduction in the number of people coming from these countries and a lack of certainty around the future movement of workers following the UK vote to leave the EU.”

It adds: “The vast majority, 91 per cent, of non-UK EU nationals employed in the region are permanent staff. Larger firms and companies in the tourism sector are more likely to be employers of this group.”

In the survey, 40 per cent of businesses in the Highlands and Islands said their confidence about the Scottish economic outlook had decreased over the last six months. Only 14 per cent said it had increased.