UK companies divert $10 billion of funding to EU over Brexit: examine

The report mentioned there had been no notable enhance in FDI from British companies into nations exterior of the EU.

Authors of the report speculated that British corporations have been offshoring manufacturing to the EU as a result of they anticipated Brexit to extend limitations to commerce and migration – making the U.Ok. a “much less enticing place to do enterprise.”

“The financial danger of Brexit is bigger on the U.Ok. facet of the Channel. British companies really feel compelled to take a position extra within the EU however not the opposite means round,” mentioned Dennis Novy, one of many report’s authors.

Rain Newton-Smith, chief economist on the Confederation of British Trade, mentioned in an announcement final week that the risk from a no-deal Brexit was “chilling funding and ravenous progress.”

“No-deal would create appreciable points for our world-leading providers companies, most often solely avoidable by shifting jobs and funding from the U.Ok. to EU,” she mentioned.

Earlier on Monday, figures from Britain’s Workplace for Nationwide Statistics confirmed that U.Ok. financial progress fell to its weakest in six years within the ultimate quarter of 2018.

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