What does the Brexit mean for the Future of Swindon Businesses?

However, many parts of the country, including Swindon, have registered strong financial growth during the first quarter following the vote. But what does Brexit mean exactly for the future of Swindon businesses?

 

Consumer Confidence

 

The Federation of Small Businesses or FSB published a report in February that measured consumer confidence in the wake of Brexit. Prices for companies that import from the EU have gone up, but the devaluation of England's currency means exporters may soon be seeing more business. But, as a result of Brexit, 29% of exporting small firms expected export levels to decline. This is significant, since a third of UK small businesses either import goods or export goods, and around 90% of this trade is with the EU. The EU receives just under half of all UK exports. The policy director of Business West Matt Griffith said that Brexit could cause restricted access to the EU market and more red tape.

 

The Economics

 

Yet Swindon seems to be defying the national trend toward the doldrums. The town's unemployment rate is an impressive 1.3% and its large number of apprenticeships means it achieves this without discounting young adults who can't find work. This strong local demand for talent has caused wages in Swindon to rise 2.7%, whereas London is seeing declining wages as the impact on the financial sector is felt.

 

Looking Ahead

 

Businesses have to start planning ahead to adapt to Brexit because the UK will be fully out of the EU two years after Article 50 was triggered. Business West policy director Matt Griffith said it would be harder to find workers to plug skills gaps, though the high unemployment rate in most of the UK renders this point moot.

 

A serious question to be answered is what happens to those EU residents who are already working in the UK. Will they be issued work permits as a matter of course or have to justify their existence in the UK? Would their applications be processed fast enough to avoid problems? IT companies that are heavily reliant on foreign labour are considering relocating.

 

However, IT companies that serve the domestic market or international clients like bestwebhosting.co.uk are unaffected. For many businesses, setting up a website and drawing more international business to offset direct trade with EU customers is an attractive alternative. Uncertainty on matters like applicable regulations, tariffs, and fees make businesses reluctant to invest unless they are trading with Asia, the Americas, or the domestic market. However, this is less than the uncertainty created on the fight to overturn the Brexit referendum.

 

Swindon's local economy is much stronger than the rest of the UK, and it is not going to be adversely impacted by separation with the EU as much as London will be.