UK businesses of all sizes are largely in favour of remaining in the EU, but few have considered the practical implications of a 'Brexit' with two thirds of companies unprepared for a vote to leave, finds research from Grant Thornton
A survey of over 200 senior executives, conducted after agreement was announced on the package of reforms negotiated by the Prime Minister, found that 65% would vote to remain in the EU.
Among London businesses this rises to 80% in favour of remaining, while outside of the capital, 59% would vote to stay in the EU.
The survey found support for staying in across all business size, with a majority in favour of remaining in the EU among small businesses (60% in favour of remain), mid-sized businesses (61%) and large businesses (76%).
When asked about the effect of a possible Brexit, nearly half (48%) of respondents believed it would have a negative impact on growth and jobs in their business, while 38% thought there would be no change. Ten per cent believed a Brexit would have a positive impact and 7% did not know.
Those businesses who only trade in the UK were in favour of remaining inside the EU (62%) as well as those who export to other EU markets (63%). This rose to 72% in favour of remain amongst those businesses who trade internationally outside the EU; amongst this group of exporters, 67% thought leaving the EU would damage their growth prospects.
Respondents also felt a vote to leave the UK would make it more difficult to export goods and services or operate in the EU (47%) and access the skills they need (32%).
Robert Hannah, chief operating officer at Grant Thornton UK, said: ‘With the package of reforms now agreed, the date of the referendum firmly set and both sides of the debate campaigning in earnest, organisations need to start considering the scenarios that could play out once the dust settles and the votes are tallied.
‘Whilst it is clear how business leaders in small, mid-sized and large businesses would vote personally in a referendum, some said they don't know what impact Brexit would have on their business and the majority have not done any planning for a possible Brexit.’
The survey found that over 65% of respondents said they have done no planning at all.
Hannah said: ‘Whilst there is a lot of uncertainty about what the UK’s relationship with the EU would be if the referendum results in a “leave” decision, identifying the “known unknowns” that might affect your business is an important step in being prepared.’
