• STV
  • MySTV

Brexit 'could release wall of cash if it's done well'

Business leaders say Brexit could release a "wall of cash" to companies.

Brexit: Could 'release wall of cash' if done right.
Brexit: Could 'release wall of cash' if done right. Brexit

Brexit could release a "wall of cash" to companies if it is "done well", business leaders say.

With uncertainty over the UK's departure from the European Union having "stymied" investment, the Scottish Chambers of Commerce (SCC) said money that been held back could be released once Brexit is completed.

SCC president Tim Allan said that if "Brexit is not just done but done well, there is significant potential for an upside".

He spoke out after the latest SCC quarterly economic study showed overall business performance had declined in the last year.

Mr Allan said this had happened "as companies take on board extra uncertainties caused by the tortuous progress of the Brexit process".

He said: "We continue to affirm the view that a disorderly, no-deal departure from EU will have painful, long lasting consequences for the economy in Scotland and the UK. But we also believe that, if Brexit is not just done but done well, there is significant potential for an upside.

"Uncertainty has undoubtedly stymied corporate investment. We put a direct challenge to political leaders today - deliver a positive outcome to Brexit and the economy will benefit.

"We believe there is a wall of cash that has been pent up while the process of leaving the EU has unfolded which can and will be unleashed."

The research, carried out together with the Fraser of Allander Institute economic think tank, covered the period June to September 2019.

More than three quarters of firms in the tourism sector are looking to take on workers, it found, with half these companies reporting recruitment difficulties.

In the construction sector, sales had slowed, while less than a quarter of companies reported investment was rising. And in manufacturing total sales revenue fell back, with sales trends described as being "significantly lower than recorded for the for the same quarter of 2018".

Mr Allan said the challenges facing businesses were "laid bare" in the report.

He added: "As the UK faces yet another deadline in the Brexit process, construction and manufacturing have reported severe challenges in terms of future orders, exports and investment.

"Meanwhile companies in sectors including retail and tourism face continued challenges in recruiting people with the right skills as the number of available workers from Europe continues to decline."

Professor Graeme Roy, director at the University of Strathclyde's Fraser of Allander Institute, said: "Scottish businesses appear to be treading water as they await clarity on the terms of the UK's exit from the EU. "

He added: "The data suggests that Scotland should avoid a 'technical recession' - defined as two consecutive quarters of negative growth - when the next set of official figures are released later on this year. However, growth remains fragile and investment levels remain weak.

"A 'no-deal' Brexit remains the greatest immediate risk to the Scottish economy. It is misguided to argue that 'no deal' is better than further delay. A 'no-deal' would not only act as a major economic shock but will do little to curb uncertainty, with the UK's future relationship with the EU still needing resolved."

Scottish Finance Secretary Derek Mackay called for a no-deal Brexit to be ruled out, adding: "It's clear from this latest report that Brexit uncertainty, and in particular the threat of 'no deal', is having an increasingly negative impact on business confidence."

He said the Scottish Government was taking steps to mitigate the impact of Brexit but could never be entirely ready for leaving the UK without a deal.

Download: The STV News app is Scotland's favourite and is available for iPhone from the App store and for Android from Google Play. Download it today and continue to enjoy STV News wherever you are.

One account. All of STV.

This field is required. That doesn't look like a valid e-mail format, please check. That e-mail's already in our system. Please try again.
ShowHide
Forgot password?
This field is required. This must be at least 6 characters long. Did you enter your details correctly?
If you've forgotten your details then use the 'Forgot password?' link.
Need to reset your password?

We'll send a link to reset your password to

We've sent you details on how to reset your password

Please check your email and follow the instructions.

Forgotten your email address?

Have you forgotten the email address that you previously joined with? Don't worry, by emailing enquiries@stv.tv we can help.

One account. All of STV.

This field is required. Please enter at least 2 characters
This field is required. Please enter at least 2 characters
This must be at least 6 characters long.
ShowHide
This field is required. This must be at least 6 characters long.
You must be over 16 to join STV.
This field is required. This doesn't appear to be a valid date
We need this to check that you live in an STV region.
This field is required. This doesn't appear to be a valid postcode
Would you like us to email you about our great shows and services from time to time?
We'll only send emails we think you'll like (see example) based on information you have supplied and shows you have watched on STV Player. For details on emails and advertising, see our STV & You page.
Would you like to receive emails from the Scottish Children's Lottery about draws, instant games and competitions?
We support the Scottish Children's Lottery (SCL), which is managed by our colleagues at STV ELM Ltd. You can find out more about the SCL on its website, including its Privacy Policy.

By continuing you agree to our Terms of Use, and understand our Privacy and Cookie Policies.

Upload Profile Picture

Please make sure your image is under 2mb in size and a valid JPG, PNG or GIF.

Are you sure?

Unfortunately, you'll be unable to access our premium content. We’ll be sorry to see you go, but if you change your mind you can rejoin us at any time.

Please verify your STV account

Please verify your STV account using the email we sent you. If you have lost the email, we can send you another one, just click the button below.

Thanks

We've sent you a new verification email.
Please check your email and follow the instructions to verify your account.

Welcome to STV
Thanks for joining us.

Oops!

Sorry, you must be at least 12 years old to place a vote for your Real Hero.

Please review our Voting Terms of Use for more information.

Oops!

Sorry! It seems that you are using a browser that is incompatible with our voting service.

To register your vote please copy the below URL in to your regular mobile browser. We recommend Google Chrome, or Safari.

http://shows.stv.tv/real-heroes/voting

Oops!

Sorry, you seem to have already voted in this category.

Thanks for voting

Now share your vote with friends on your social network

Share on twitter Share on facebook

Cast your vote

Please register or sign in to continue.

Cast your vote

This field is required. This doesn't appear to be a valid date

Cast your vote

Please fill out this form to cast your vote. As you are under 16 years old you will not create an STV account. Why do we need these details?

This field is required. Please enter at least 2 characters
This field is required. Please enter at least 2 characters
This field is required. That doesn't look like a valid e-mail format, please check.
Location This field is required.
Parental Consent This field is required.

That's you. All that's left is to click the 'Submit Vote' button below. By doing so, you confirm that you and your parent or guardian have read and accept our Voting Terms of Use, Privacy Policy and Cookie policy, and that the details you have entered are correct. We'll look after them as carefully as if they were our own.