Three-quarters of British company bosses are considering moving operations abroad following the vote to leave the European Union, according to a survey published on Monday.

The KPMG survey of 100 UK chief executives, from companies with revenues between £100 million and £1 billion, found 86 per cent were confident about their company’s growth prospects and 69 per cent were confident about the British economy’s growth prospects over the next three years. However, 76 per cent said they were considering moving either their headquarters or their operations outside Britain because of the June 23rd Brexit vote.

“CEOs are reacting to the prevailing uncertainty with contingency planning,” said KPMG UK chairman Simon Collins. “Over half believe the UK’s ability to do business will be disrupted once we Brexit and therefore, for many CEOs, it is important that they plan different scenarios to hedge against future disruption.”

Uncertainty

The June vote has created uncertainty over Britain’s future economic and trade relationship with the EU. John Nelson, chairman of Lloyd’s of London, said last week that the insurance market would be ready to move some of its business to the EU as soon as Britain invoked article 50 of the Lisbon treaty, which triggers the start of exit from the bloc. Aides to UK prime minister Theresa May have suggested she hopes to trigger article 50 early next year, opening the way for up to two years of negotiations.

Asked what would encourage businesses to continue investing in Britain following the Brexit vote, the majority of chief executives surveyed by KPMG ranked certainty over trade terms as the most important. Only one chief executive said a timetable for triggering the formal divorce process and the subsequent exit was the most important factor.

KPMG said 72 per cent of the chief executives surveyed had voted to remain in the EU. The Brexit vote has hit the British currency, with sterling skidding to a five-week low close against the dollar on Friday, but a Reuters poll this month found Britain is expected to narrowly dodge a mild recession that was widely predicted after the referendum.

More than 20 European business associations and companies interviewed by Reuters said they backed their governments’ position that Britain’s banking sector can enjoy EU market access post-Brexit only if the country still follows the bloc’s rules. – (Reuters)