With Brexit striking fear in the hearts of people all over the country, surveys have been done to find out what people expect to happen after the UK leaves the EU in March 2019. A recent survey showed that more than a third of small sized British companies are expecting the pound to vastly drop in value.
Surprisingly though, even with 34% of these companies expected a drop of more than 10%, 11% of the companies surveyed thought that the pound would rise in value by 10%. Along with this, 18% of companies claimed they were unsure how the pound would be effected by Brexit. A massive 2/3 of companies said that they were not preparing for a weaker pound.
With many of these companies trading internationally, it is a shock to see that they haven’t even thought about preparing for a weaker pound. There is a strange disconnect between how people think the pound will be effected and what they are actually doing in preparation for these changes.
Of course, the effect on the pound’s worth is more than likely to be determined by whether or not the UK and the EU agree a divorce deal. If a deal is agreed we could see a rise of ~10%, however a no deal Brexit could end in a fall of ~10%.
Quote from Nigel Holland of Holland & Co Chartered Accountants:
“No one is certain on the future of the UK’s economy. We must hope for a deal between Britain and the EU to ensure that our economy is unaffected and maybe even benefits from our departure from the EU.”