TALKING to one of my colleagues recently, he was bemoaning the fact that his Pound wouldn’t go as far this year when he goes on holiday to Spain, the Pound in his pocket would buy fewer ice creams, pizza and beers and his concern was that he would get less for his money.
Whilst the Brexit vote has led to a sharp fall in the Pound, it is not just the holidaymakers travelling from this country that will be hit. Other losers are foreign firms exporting to the UK and foreign workers in the UK who will find it less attractive to work here. That said, to counter these losses, there must be some winners, foreign tourists coming to the UK, foreign investors investing in the UK and probably the most important winner, UK exporters. So, the fall in the Pound leads to a benefit to UK exporters, but UK importers, who need overseas raw materials for their processes, will face significant price rises.
Back to Yorkshire, how will this import/export position impact on God’s Own County? To March 2019 Q1 exports from Yorkshire to the EU amounted to cira £2.7bn, a relatively flat position, but imports to Yorkshire from the EU for the same period, over £5bn, a significant growth on the previous year of around 25%. This has been attributed to a degree of stockpiling in advance of the original Brexit date of March 29, in case of a no deal.
It is expected that another round of stockpiling might well occur prior to the next Brexit deadline, the downside, and inevitable impact of this, investment will be held back whilst businesses deal with the forthcoming possible no deal Brexit.
One highlight for Yorkshire businesses, non EU exports are rising to non EU countries, Australia, China and the Middle East, these add to the long term success of the Yorkshire market, and once the hiatus of Brexit has been left behind, this will help to maintain the Yorkshire economy… not all bad news for Yorkshire, but not great news for my colleague when he gets on his all-inclusive holiday!!!
If you’d like more advice about how you can prepare your import/export business for the implications of a no deal Brexit, please get in touch with David Richmond on 01756 620025 or email email@example.com