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Nearly Half Of Yorkshire Businesses To Expand After Brexit
There could be a surge in Yorkshire companies wanting to build new commercial property to enable them to expand their business now that Britain has officially left the European Union (EU).
Indeed, scaffolding companies in Leeds could be busy over the next couple of years building new office or industrial space or expanding premises. This is because nearly half of Yorkshire’s small and medium-sized enterprises (SMEs) have stated they will invest more money into their business now that Brexit uncertainty has come to an end.
It has been over three years since the Brexit referendum won a small majority (52 per cent compared with 48 per cent), and since then there has been a lot of political instability. This has had an adverse impact on British businesses, and many have delayed expanding or investing, as they were apprehensive about their future.
Finance experts Together reported that 21 per cent of SMEs across the country postponed plans to move premises due to this political and economic volatility; nearly a quarter (23 per cent) put off pay rises for employees; and 19 per cent avoided taking on more staff, reported the Yorkshire Post.
Since June 23rd 2016, when the referendum took place, there have been several changes to parliament. However, the last general election on December 12th 2019 resulted in a Conservative win of 43.6 per cent, while Labour lost a proportion of the votes. It dropped 7.8 per cent of its share, compared with the 2017 election, resulting in a decline of 59 seats in government. The Conservatives, led by Boris Johnson, conversely, boosted their seats by 47, giving them a clear majority.
Together reported this has boosted confidence among SMEs, who believed it would lead to more political stability, which would have a positive impact on the economy and business climate of the UK. Indeed, 42 per cent of companies now state they are hopeful about their future, while just eight said they would have been if uncertainty had continued.
Subsequently, SMEs throughout the country intend to invest a total of £1.741 billion over the next two years, which will go towards employing more staff and expanding their commercial space.
Andrew Charnley, head of corporate relationships at Together, said: “The investment taps can now be turned back on with UK SMEs expected to pump more than £1.7 billion into the national economy.”
Companies in Yorkshire and The Humber have become particularly optimistic about their businesses, with 47 per cent claiming they are more upbeat following the election results. This is a huge change from when the results of the referendum had initially been announced, with two-thirds (66 per cent) then claiming they were worried about their future.
Consequently, Yorkshire and The Humber firms intend to invest the most out of the country, typically planning to spend £450,000 each to boost their enterprise. This totals £158 million across the region, which is among the greatest amount for the whole.