Survey says most firms consider relocating head offices after Brexit

Survey says most firms consider relocating head offices after Brexit

Monday, September 26, 2016 6:45 pm


British PM, Theresa-May

British PM, Theresa-May

A survey of company CEOs in Britain, has suggested that a majority is considering moving some business away from the U.K. amid concerns about the country’s future outside the EU.

 

A survey released on Monday in London by KPMG showed that three fourths of the 100 executives questioned would consider moving their headquarters or some operations outside Britain in order to keep a link to the EU’s common, tariff-less market.

 

Simon Collins, Chairman of KPMG UK, said that more than three-quarters of the 100 chief executives interviewed by KPMG expressed their willingness to move from Britain to maintain trade links with the EU.

 

He said that the vote for Brexit in a June 23 Referendum “hasn’t dampened the short or long term confidence of UK CEOs” even though 72 per cent of them voted to remain in the EU.

 

Collins said that the survey included companies with annual sales of more than 100 million pounds (130 million dollars) and at least 500 employees.

 

“Our research has highlighted a really positive message for the UK economy, however, this confidence isn’t unbridled.

 

“CEOs are reacting to the prevailing uncertainty with contingency planning.

 

“In particular, the majority said they are considering relocating their headquarters or operations outside the UK,’’ he said.

 

Collins said KPMG had recently seen “international clients, who had been considering basing European headquarters in the UK, opt for Ireland instead.”

 

He said that the latest analysis showed that this effect could be exaggerated by UK companies moving.

 

News Agency of Nigeria (NAN) recalled that a referendum was held on Thursday 23 June, to decide whether the UK should leave or remain in the EU.

 

Leave won by 52 per cent to 48 per cent, and the referendum turnout was 71.8 per cent with more than 30 million people voting.

 

Once Article 50 has been triggered, the UK would have two years to negotiate its withdrawal.

 

Brexit Secretary, David Davis has suggested that the country could formally sever its relationship with the EU by December 2018.

 

But no one really knows how the Brexit process would work as Article 50 was only created in late 2009 and it has never been used. (dpa/NAN)

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