The British Chambers of Commerce, in partnership with moneycorp, surveyed more than 1,000 UK firms to understand the impact of both Covid-19 and Brexit on UK businesses.
As Europe still comes to terms with a new post-Brexit landscape, many businesses are now evaluating what the new processes will mean for trade between the UK and the continent.
In the Midlands, the survey had 205 respondents, of which 62% revealed that their intention over the next twelve months is to grow within the UK – a finding that is almost identical to the results of the UK as a whole.
When asked about international growth, one in four businesses in the Midlands told of their plans to expand to countries outside of the EU, compared to one in five who still intend to grow within the EU.
Overall, the report established that more UK firms will be accessing finance in the immediate future, likely due to the impact of lockdown. The survey found that while the government provided a wave of financial support in the form of business rates, VAT relief and the furlough scheme, around 20% of UK firms we spoke to are still anticipating a reliance on this support in the next 12 months.
In the Midlands, 38% of businesses said that they do not have plans to access financial support over the next twelve months, but for those that do, 67% said that it would be used for cash flow purposes, and therefore revealing that of the four regional surveys, the Midlands is the area most in need of cash flow.
Due to the uncertainty of both lockdown restrictions and a last minute UK/EU trade agreement, exchange rates have fluctuated significantly over the course of the last year, effecting the value of payments that businesses need to make and balances that they hold.
According to the survey, 22% of Midlands-based businesses remarked that currency risk is more of a concern to them now than it was two years ago, but when asked about the measures they take to manage risk exposure, the result was an even divide, with almost 20% admitting that despite knowing they are exposed to risk, they take no action to manage it, and 20% saying they have risk management measures currently in place.
For many businesses who took part in the wider survey, the aversion to being proactive about risk management stems from the cost being too high. That’s where moneycorp comes in. With many UK businesses facing increasing exposure to the volatile currency markets, working with a leading FX specialist as moneycorp can help to shore up finances and protect profits. Their team of dedicated experts are on hand to offer a tailored FX solution that enables your business to navigate the uncertain landscape caused by both Brexit and the pandemic, supporting you in your international trade no matter the scale. Speak with one of our specialists today to find out more.
For further information on the services moneycorp can provide your business, visit: https://hwchamber.co.uk/support/finances/moneycorp/ or contact: email@example.com