Brexit uncertainty has British business on edge and disheartened

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British productivity is falling at its fastest pace in five years and business investment has stalled since the 2016 Brexit vote

Britain's Prime Minister Boris Johnson on November 6 2019. Pictue: AFP/TOLGA AKMEN

“You become more mindful,” director Sam Handley said at the company’s workshops, near Mansfield in central England, where it employs 126 people. But like many executives frustrated by Brexit, Handley is not counting on a breakthrough any time soon. “I don’t think the uncertainty is going to lift at all. I think we might get a hung parliament. If this was a business, they would have been removed from their post,” she said, referring to the UK parliament. “It’s disgraceful.”Weak business confidence is not just a British phenomenon. The International Monetary Fund says China-US trade tensions are hurting investment globally.

European planemaker Airbus, meanwhile, warned earlier in 2019 that it might stop building aircraft wings in Britain if the country leaves the EU without a withdrawal agreement. Mizen said the decision-maker panel survey also showed that constantly changing Brexit scenarios are distracting companies from focusing on boosting productivity.

Potential Brexit problems include disruption at Britain’s borders with the EU that could push up the price of the steel her company needs, or a further fall in sterling that would make imports of key parts from the US more expensive.To address those risks, SPE has stockpiled steel and, after taking a £140,000 hit from a bout of sterling weakness in 2018, makes sure it hedges all its foreign exchange exposure.

 

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