The UK government marked a decisive step in their Brexit negotiations a couple of weeks ago by agreeing to a 21-month transition period. It was decided that during that period, the UK would be able to negotiate, sign and ratify its own trade deals. The transition period provides precious time to plan a smooth transition into what is perceived by many as uncertainty in the post Brexit UK economy.

 

The UK will continue to maintain its comparative advantage in the short to medium term future with its tradable services, industries, and London, despite all of the uncertainty that has been looming from the Brexit negotiations, retaining its position as the financial capital of the world in 2017 both in terms of financial strength and influence.

 

Sceptics will identify our loss of comparative advantage in financial services and the emergence of Germany as the new European financial capital, a title that the UK has held for many years. The UK has demonstrated that it is flexible, dynamic and aware of how to stay competitive on a global stage. The UKs proactive approach to dealing with economic diversification and the threats from leaving the common market has been evident from the record £3 billion investment in Tech firms in 2017, nearly double the £1.6 billion raised in 2016. Incidentally, this amount was four times more than Germany and more than France, Ireland and Sweden combined.

 

London still remains the ‘go-to’ city for ambitious and innovative entrepreneurs. London’s tech firms raised more venture capital investment than other European counterparts. Venture capital itself increased significantly, highlighting investors’ confidence in the future of the UK’s economy but also the intellectual assets that the UK has. Furthermore, the UK is home to some of the world’s best universities (15% of the world’s top-100 are based in the UK), with a large majority based in London, some of which are at the forefront of innovation and technology. This gives an ideal base for businesses seeking a workforce that is in tune with the needs and challenges of the global economy.

 

The UK and London will continue to play to its strengths in the current climate, but how do these strengths translate to business owners, entrepreneurs and business operations? Well, the Governments attitude towards business and entrepreneurship is certainly a positive and proactive one. For example, the infrastructure facilitates the formation of new companies with relative ease and minimal regulatory input. The UK government also offers support to start-ups and entrepreneurs operating in various industries through R&D relief and other schemes available.

 

Small to medium sized businesses will often get caught up in the rhetoric surrounding negotiations. Terms such ‘Brexit’, ‘Economic behemoths’, ‘Comparative advantages’ and ‘Numbers in the billions’ to name a few. What they should do is filter out this noise and focus on the elements that will have significant influence on their day to day and long-term business goals.

What is certain, is that Ecovis will be up to the task of facilitating its existing and prospective clients’ needs in what is perceived to be an uncertain future.

Ecovis Wingrave Yeats

www.ecovis.co.uk

+44 (0) 207 495 2244

For more information contact 

Gerry Collins                                                                         Monika Szalek

Partner                                                                                   Manager

gerry.collins@ecovis.co.uk                                                monika.szalek@ecovis.co.uk