Uncertainty remains on the impact to businesses of the UK’s impending departure from the EU, according to the publication of a tranche of financial analyses.
New figures published by the Fraser of Allander Institute at the University of Strathclyde have suggested a so-called ‘hard’ Brexit would result in 80,000 Scottish job losses and could reduce wages by as much as seven percent – an average of £2,000 per worker per year.
The findings have been described as “highly speculative” and “very premature” by the UK government, arguing the Institute had failed to consider opportunities that would arise from Brexit. However, Scottish Nationalists have frequently highlighted the support for the Remain campaign in Scotland, although there is no prospect of Scotland remaining in the EU once negotiations are completed. A new report commissioned by TheCityUK has also suggested that a ‘hard’ Brexit could cost the UK £38 billion in financial services revenues and as many as 75,000 jobs.
However, the study also suggested addressing the passporting issue, which would allow UK-based firms to do business in Europe, would reduce that impact.
Despite the publication of the new research, Paul Eagland, Managing Partner of accountancy firm BDO, has insisted smaller firms are taking a pragmatic approach to the UK’s departure from the EU and are already contingency planning for possible effects of the negotiations on their businesses.