· By Hunter Ruthven
With the ink only just starting to dry on the Electoral Commission’s official document, Real Business cuts through the noise by analysing what business leaders can expect in the coming weeks and years.
The pound has dipped drastically against the euro, and will need to bounce back
Overnight, the pound fell to its lowest level since 1985. For business owners importing from overseas, they are likely to see prices rise and margins eroded. However, for businesses largely selling to international customers, a dip in the pound could lead to a decent uplift in demand.
As we saw in the aftermath of the recession, uncertainty does nothing for confidence – and ultimately investments and consumer spending. The Leave campaign often failed to answer many of the questions asked before the referendum about what situation British business would be in if we left the European Union – and entrepreneurs up and down the country will now be keen to find out. Now that the prime minister has announced his resignation, a quick and comprehensive plan must be drawn up to deal with confidence issues.
While it remains to be seen how companies will be able to recruit overseas workers, in the short term employees from other EU countries working in Britain will likely be feeling unsure as to what their future will be. With productivity an issue, any kind of unrest will be unwelcome from employers.
The property boom that has been occurring in recent times could be brought to a screeching halt. Analysts believe buyers’ and sellers’ uncertainty will drive an initial slowing of the market, with the longer-term fallout determined by how severely leaving affects the economy. However, businesses could see a dip in rental bills or even a nice opportunity to buy office space.