A recent survey was undertaken by CBI (The Confederation of British Industry). The survey revealed that an increasing number of UK companies are creating back up plans with regard to jobs and production to move overseas due to uncertainty surrounding Brexit. But what does this mean for the UK in the long term?
With 56% of businesses that were surveyed preparing to adjust supply chains abroad. “Unless a withdrawal agreement is locked down by December”, jobs will be lost. This will have a knock-on effect on the UK economy.
During an interview, Nicky Morgan, a Conservative MP who chairs the Commons Treasury Committee, said: “tremendous damage” is being caused to banks and other large financial services in London due to the current negotiation stand-off.
Increase in demand for relocation services
Naturally, an increase in businesses looking to move overseas means there will be an increase in demand for relocation services. As a business owner, you need to ensure that you have an effective relocation strategy in place. Galleon International are experts in international removals. Our team listen to your every need and tailor our service to suit you. We believe a personal service is essential to keep your employees and their families happy. After operating for almost 40 years, we have gained access to all the local knowledge you need to know to ensure you’re ready to start your new life.
Are you planning to move overseas just in case things don’t go as smoothly as planned?
At Galleon International, corporate relocation services, we have a team of experienced global mobility experts. Our team will create and tailor completely bespoke programmes to suit your corporate relocation needs. To find out more information on how Galleon International can help your business when relocating employees, give us a call today on 01708 868 068.
According to the latest EY survey, around a third of financial services firms in London have confirmed contingency plans to establish European hubs after Brexit.
Although the agreement on a post-Brexit transition period had “not stemmed the steady stream” of companies confirming their contingency plans; the EY has reported that a total of 75 out of the 222 firms had developed plans ahead of Britain leaving the EU.
The survey came just as the London mayor; Sadiq Khan, warned MPs that jobs and investments were at risk in the capital and other UK cities. This is because “the government was not doing enough to safeguard services in Brexit talks.”
Released on the 25th June, EY’s Financial Services Brexit Tracker found that there has been a two per cent increase (34%) since March, in the number of companies confirming their plans to move some of their operations or staff from the UK.
About a quarter of the firms have plans to relocate staff to one or more of the EU locations; with Dublin and Frankfurt being the most popular locations for relocation. Currently, 32 companies have confirmed plans to move staff from the UK. This is up from 28 in the first quarter.
While most firms are yet to iron out the finer details of their relocation plans; the survey shows that there is evidence to suggest that they are making decisions about the future of their employees in the UK.
Speaking to the House of Commons Public Administration and Constitutional Affairs Committee, Mr Khan pointed out that trade in services accounted for about 40 per cent of UK exports to the EU. However, the sector accounted for more than 90 per cent of the economies of London; Manchester and Edinburgh. As well as more than 80 per cent in Leeds and Birmingham.
Are you looking to put together a contingency plan ahead of Brexit, just in case things don’t go ahead as planned?
Galleon International has a team of global mobility experts who will put together specialised and unique programmes for your corporate relocation. For more information on how Galleon International can be here to help your business and its employees’ overseas move; get in touch today on 01708 868 068.