Shropshire business leader calls for Brexit uncertainty to 'go away'

Richard Sheehan said the lack of clarity over what Britain's exit from the EU will mean for businesses is preventing many from investing.

It comes after the British Chamber of Commerce downgraded its near-term growth predictions for the UK economy, citing uncertainty around the country's prospective departure from the EU.

The business group is now forecasting UK gross domestic product growth (GDP) for 2018 at just 1.1 per cent, down from 1.3 per cent.

It said the decision had been sparked by a weaker outlook for trade and investment in the country.

It also predicted that real wage growth "would remain muted despite the historically low unemployment rate".

Mr Sheehan said: "There isn't anyone on this planet who doesn't recognise that Brexit is causing some significant uncertainty within the business community and consumers in general.

"Our own latest economic survey demonstrates the level of concern fuelled by uncertainty which is preventing their commitment to investment. This has been manifesting itself in the slowdown in domestic sales.

"But export sales have improved which is pleasing and the majority of exporters are not expecting a downturn soon.

"We have also received intelligence through the economic survey that companies continue to struggle to find the right staff. More than 70 per cent of respondents say they have issues with recruiting and getting staff with the relevant skills set needed in their business, which is a major concern.

Interpretations

"We have discovered on the back of uncertainty and investment activities we are seeing a recurring low confidence level in terms of turnover and profitability.

"There is no pattern to the uncertainty. It is not limited to a particular size of business or sector. Two companies of similar size and in the same sector are taking different views. People's interpretations of what the future may look like vary.

"Uncertainty needs to go away. We need clarity. We have been asking for it for more than two years and the circumstances have not changed yet.

"I hope in the coming weeks we will see clarity, see the direction of travel, and encourage businesses to invest in their future.

"Businesses want to take advantage of everything that is out there but uncertainty is causing hesitation."

The BCC has also downgraded its GDP growth forecast for 2019 from 1.4 per cent to 1.3 per cent. Its 2020 predictions are unchanged at 1.6 per cent.

"Our latest forecast implies that by 2020 the UK economy will have experienced its second weakest decade of average annual GDP growth on record," the BCC said.

It added that consumer spending was also expected to remain weak, and that real wage growth will likely elude workers in the short term.

Suren Thiru, head of economics at the BCC, said: "The changes to our forecast indicate that the UK economy is in for a testing period, with persistent uncertainty and the possibility of a disorderly EU exit increasingly weighing on the UK's growth prospects.

"Mounting uncertainty and the cost of doing business in the UK is likely to put a brake on investment intentions, while for exporters a combination of moderating growth in key trading markets and Brexit uncertainty are forecast to limit export activity."