New figures have shown a decline in the number of French, Dutch and Belgian businesses registering in the UK following the results of the referendum.
Companies House has revealed statistics showing a 52 percent reduction of businesses from the Netherlands registering in the UK between 2016/7 compared to the year before.
The uncertainty surrounding Brexit has impacted the British economy with OECD figures showing that foreign direct investment into the UK fell by 90 percent in 2017.
While the UK is suffering a lack of business registrations, businesses in Luxembourg registered an increase of 71 percent while Cyprus doubled registrations.
“The decrease in EU company registrations sets a worrying precedent, suggesting that overseas organisations may not see the UK economy as a safe place to do business,” said Lynne Hardwick, the head of marketing at Evolution Money.
We can only hope this trend reverses as these businesses are a vital part of our infrastructure,” he added.
Research by The City UK and EEF have also highlighted the effects Brexit will have on recruitment in the UK. Brexit will restrict access to skilled workers from the EU and will deter non-European citizens from applying to work in the UK.
“Nearly half of the UK’s manufacturers remain concerned about their ability to access skills post-Brexit. The slump in job applications from the EU has slowed since last year, but 17 percent of companies saw a slump in applications from European citizens,” read the report.
“In addition, a further 13 percent of manufacturers still report an increase in EU workers leaving their businesses. Many of those employees are returning to the EU permanently, with companies struggling to recruit suitably skilled staff in the UK. This report calls on government to move swiftly to give companies and their workforce increased clarity over the future of EU citizens working in the UK to stem the outward flow.”
Miles Celic, chief executive of The City UK said: “Britain’s success is built on openness. Being able to attract the most talented people with the right skills, from both the UK and overseas, is a top priority for business leaders.”
According to Celic, access to foreign workers is “critical for working in a global environment”.