Brexit: Third of business leaders to cut investment

Over a third (36%) of UK business leaders have said the outcome of last Thursday’s EU vote will cause them to cut investment in their business, according to a reaction survey from the Institute of Directors.

One in 10 (9%) said they will increase investment, while just under half (44%) say it will not change their investment plans.

Additionally, 64% of 1,000 IoD members polled said the result is negative for their business, against 23% who think it is positive. Only 9% said it makes no difference.

“Businesses will be busy working out how they are going to adapt and succeed after the referendum result,” said Simon Walker, director general of the IoD.

“We can’t sugar-coat this, many of our members are feeling anxious. A majority of business leaders think the vote for Brexit is bad for them, and as a result plans for investment and hiring are being put on hold or scaled back.”

The survey also revealed one in five (22%) are considering moving some of their operations outside of the UK, while only 1% say they will bring operations back.

Walker added: “There is no point crying over spilled milk. We will not lose our faith in the ability of British firms to overcome these obstacles, but these results highlight the importance of the Bank of England maintaining stability in the financial system. It is crucial that the banks do not starve businesses of cash.

“Businesses have a clear message to those who may wish to replace David Cameron as Prime Minister: during the referendum campaign we were promised an open and outward-looking country after Brexit, now it must be delivered.”