Despite the apparent deadlock over Brexit negotiations, middle market businesses remain bullish about the prospects of the UK securing a good deal, with twice as many companies feeling positive rather than negative on the topic, according to a YouGov survey
The research, commissioned by RSM, polled more than 300 UK middle market business leaders and found 45% were confident that the government could achieve a good deal, compared to 21% who said they were not.
RSM’s Brexit Monitor index, in which any reading above 100 indicates that businesses are more optimistic than pessimistic, showed that sentiment about the impact of Brexit on the economy over a five-year period rose from an index score of 106 in the last quarter to 108.
The only region in negative territory is London, which registered a score of 95 on business sentiment around the impact of Brexit on the economy over a five-year period. Central England, by contrast, was the most optimistic, registering a score of 122.
The technology, media and telecommunications (TMT) sector stood out as the most consistently upbeat in terms of the likely impact of Brexit on the industry’s prospects over the next five years, registering an index score of 133.
Conversely, the consumer market saw the most challenging conditions ahead for their industry, with an index score of just 94.
Simon Hart, RSM’s Brexit lead partner said: ‘Despite the political challenges, businesses remain relatively confident about the government’s ability to deliver a good deal and sentiment towards the longer-term impact of Brexit appears to be becoming marginally more optimistic.
‘We’re also seeing a decline in the polarisation of opinion over the impact of Brexit on the economy as we move further away from the referendum. There are clearly many unanswered questions regarding our future trading relationships with the EU and other global markets. However, the latest results of our survey suggest that perhaps businesses are taking a more pragmatic view of what could lie ahead and are taking steps to adapt and emerge stronger post-Brexit.’
Thinking about the sort of trade deal that mid-market firms would like to see with the EU once the UK has left, 22%t favoured the Canadian and Norwegian models respectively, 19% the City State model (Singapore and Hong Kong) and 17% the Swiss model. Only 6% preferred the Turkish model.
Report by Pat Sweet
