Business News Business News Latest news from Greater Birmingham Chambers of Commerce Brexit failings impact local firms By John Lamb
Business leaders said a new survey demonstrates how political inaction over Brexit has had a damaging impact on firms in Greater Birmingham. This follows the results of a Greater Birmingham Chambers of Commerce (GBCC) survey which shows that confidence and home orders among manufacturers have plummeted over the past six months. Another alarming result from the GBCC’s first
Quarterly Business Report of 2019 is that there is a universal lack of preparedness for Brexit. It also revealed that investment intentions
among manufacturers had dipped in line with domestic trade. However, the service sector held up better.
‘Our firms have quietly and confidently gone about their business with a calm reassurance’
But the GBCC says businesses should be praised
for their resilience in the face of “chaos and turmoil” generated in Westminster over Brexit. The report, sponsored by Birmingham City
University, shows that domestic sales for manufacturers fell dramatically with only 39 per cent reporting increased sales, a drop of 10 per cent on the previous quarter. Advance orders fared worse with 29 per cent showing an increase against 41 per cent in Q4 last year. This decline had a negative impact on
confidence. Manufacturers expecting to improve turnover in the next 12 months fell from 71 per cent to 43 per cent while those confident that profitability would increase dropped from 56 per cent to 37 per cent. Paul Faulkner, chief executive of the GBCC, said: “For the past two years, a sense of chaos and
Raj Kandola: Brexit concerns
turmoil has defined political activity at Westminster. This has created the impression that very few politicians are capable of putting aside party allegiances and working together in the national interest to tackle the most crucial negotiation this country has witnessed in over a generation. “In the meantime, our firms have quietly and
confidently gone about their business with a calm reassurance borne out in the results we have seen in a number of these reports over the past 18 months. Nevertheless, as we approach the end of March, it is clear the spectre of Brexit is having a marked effect on business output. “In particular, it was no surprise to see that over
a quarter of firms cited Brexit-related uncertainty as the main pressure they are encountering as the country faces the prospect of sleeping walking into a disorderly withdrawal from the EU. “Politicians have been quick to roll out empty
platitudes on protecting the needs of the business community but their actions suggest
otherwise. The Government’s plans to introduce a new tariff scheme in the result of a no-deal Brexit going ahead without any consultation of the business community is a case in point. “We will be working with the British Chambers
of Commerce to ensure the views of local firms are reflected and recognised throughout the duration of the negotiation process, however long and arduous that might continue to be.” Raj Kandola, senior policy and patron adviser
at the GBCC, said a set of questions about Brexit revealed a concerning lack of preparation. He added: “Sixteen per cent of firms in both
sectors combined felt ‘not at all prepared’, 44 per cent felt ‘somewhat prepared’ and, worryingly, 25 per cent ‘didn’t know’ how prepared their business was ahead of Britain’s eventual departure. “Our advice for businesses remain simple –
prepare for what you can control and the GBCC is running as number of free Brexit Clinics to support local firms through the process.”
April 2019 CHAMBERLINK5
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