Brexit drives biggest UK business investment cut in a decade

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Brexit drives biggest UK business investment cut in a decade

On Monday, the 18th of March 2019, an employer group said that the scale of business investment in the United Kingdom had dwindled to its lowest level in 2019 in a decade. Blaming the Brexit chaos, the Employer group had also added that even a PM May’s amended deal to ease the nation out of EU would not be able to avert the imminent contraction and recession risk.

According to British Chambers of Commerce, business investment was forecasted to fall by 1 percent annually in 2019, while weak investments would highly likely to put a brake on wage rise and shrink the entire economy. Addressing to economic consequences of political gridlock, the director general of British Chamber of Commerce, Adam Marshall said, “Political inaction has already had economic consequences, with many firms hitting the brakes on investment and recruitment decisions.

Worse still, some companies have moved investment and growth plans as part of their contingency preparations. Some of this investment may never come back to the UK”. In the face of an uncertain Brexit, many British companies had already swept their assets into other European countries to stay operation even following a worst-case scenario, while new investments had remained grievously hurt.

Besides, over a Brexit dilemma, business investment had tumbled in each of four quarters of 2018 calendar year, and the same would more likely happen in Q1, 2019. Never the less, the UK Finance Minister, Philip Hammond had been quoted saying that he had been expecting a surge in the investment following a successful Brexit deal.