20 July 2017


Brexit is affecting investment decisions

This week saw the second round of UK-EU exit negotiations take place, a new CBI survey shows over 40% of businesses have had investment decisions affected by Brexit.

Brexit is affecting investment decisions

According to a CBI survey of 357 businesses, both members and non-members, over 40% of businesses say that Brexit has affected their investment decisions. Of those, 98% say that the impact has been negative.

As the importance of the Government agreeing the terms of the transition to provide much needed clarity and certainty for business, the survey results highlight the critical findings for businesses making investment decisions. Companies reporting that Brexit had negatively influenced their investment decisions cited general uncertainty over the UK’s future relationship with the EU. In contrast, the weakness of sterling against the dollar was viewed as the only positive impact.

Businesses are making investment decisions now and need more sense of clarity and continuity to support jobs and prosperity. The Government must work quickly to agree the terms of the transition and future trading arrangements.

Just over a fortnight ago, at a lecture delivered at LSE by CBI director-general Carolyn Fairbairn, and CBI chief economist Rain Newton-Smith suggested staying in the European Single Market and Customs Union until a final deal comes into force. They emphasised this was the simplest way of ensuring companies don’t face a damaging cliff-edge and that trade flows can continue without disruption.

For more information on the business views of Brexit, visit our website hub to find all CBI reports and insight, or contact us at EUNegotiations@cbi.org.uk.