Brokerbility chairman Ashwin Mistry OBE suggests Brexit is overshadowing huge national issues:
“June 2016 seems a long time ago and the country voted to leave the EU. No-one quite knew what that meant.
“In short, the Ƶ wanted its own independence, to make its own trade agreements, control its borders and become a global place to do business with and in.
“They say the devil is in the detail and that has to some extent has hampered the deal process.
“Free movement of people and the divorce bill seem to have gone off the agenda for the moment and the focus remains on the Irish Back Stop.
“Not having a majority in Parliament and having two successive unelected Prime Ministers is also playing its part. “The country needs leadership and direction.
“So what do SME’s make of all this? There are differing views and differing positions on our stance as a country. “However, two things unite all SME’s particularly now and the first is that businesses just want to do business and secondly they all desire us to move on.
“A number of business decisions have been put on hold, due to both Brexit/Ƶ political uncertainty and geopolitical changes such as:
– Investments in infrastructure
– Employment of additional staff
– Investments in innovation
– Implications of changes in tariffs
– Geopolitical implications
– Tax changes afoot
– New/revised regulations – including foreign workers rights
– Implications for travel and movement within the EU
– Volatile currency movements
– Impact on oil prices
– Panic stock-piling in some circumstances
– Food and medicine shortages
– Additional administration relating to auto enrolment, a rise in minimum wages, Apprenticeship Levy, etc
“The list can go on, however once Business confidence is challenged, everything else is impacted.
“SMEs in particular do not have the luxury of discussing Brexit all day, nor do they have time to examine all the possible scenarios that may unfold.
“Questions are being asked regards what does “Be Brexit Ready” actually mean to an SME employing under-25 people?
“What help will the Government provide?
“Will banks/lenders be more tolerant in these turbulent times?
“What is planned next for investments in core services like the NHS, education and housing (not just headline grabbing pledges), and how will these be paid for?
“And is climate change being taken seriously enough?
“As professional insurance brokers, we see our clients possibly more frequently than other advisors.
“We need to ascertain client attitude, changes in business model, understand the risks posed to them and provide the best risk management advice, manage costs relevant to risk, advise them of new and upcoming risks like cyber, directors’ and officers’ liability, employment protection liability and also now drones!
“Business and personal travel Insurance is also now in play following the collapse of Thomas Cook.
“The retail sector is undergoing fundamental change as clients/customers buying habits are constantly changing...
“Businesses will need to adapt and adapt very quickly.
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“I hope the above gives you a flavour of the challenges.
“On the positive note, those businesses that have evolved, taken time to understand the changing market dynamics, those with strong balance sheets and innovation running through the workforce will thrive and grow significantly whatever the outcome in the next few weeks/months.
“Darwin’s theory of “survival of the fittest” will very much come into play and it should be the responsibility of all businesses to engage with politicians, plan their futures and share business plans with their greatest asset, their staff.”
