IoD survey shows first signs Brexit will hit jobs
A survey by the Institute of Directors has revealed that nearly two-thirds of its members think the result of the EU referendum is negative for their business.
A third said hiring will continue at the same pace but a quarter plan to put a freeze on recruitment and 5% said they will make redundancies. In addition, some one in five said they are considering moving some of their operations outside of the UK.
The news comes as Business Secretary Sajid Javid holds a meeting of business groups to discuss the ramifications of the Brexit vote. Leaders from over 20 organisations will attend including the IoD, CBI, British Retail Consortium, British Banking Association, and British Chambers of Commerce.
Simon Walker, IoD director general, said: “Businesses will be busy working out how they are going to adapt and succeed after the referendum result. But 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.”
Over a third of IoD members said the outcome of the vote will cause them to cut investment in their business, against one in 10 who said they will increase investment. Meanwhile, 44% said it will not change their investment plans.
The IoD said the overwhelming priority now for business leaders is that steps are taken to protect the economy from the negative reaction in financial markets, with three-quarters ranking this first. Next comes securing a new trade arrangement with the EU.
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.”
