In a new report from EY on Channel Islands businesses post-Brexit, 80 per cent of businesses surveyed think Brexit will bring opportunities their organisations can take advantage of.
This is despite the majority of Channel Islands organisations surveyed believing the UK should have voted to remain in the EU (78 per cent in Guernsey and 79 per cent in Jersey).
Following June’s referendum result, EY surveyed organisations across the Channel Islands to obtain a greater understanding of the impact the UK decision to leave the EU will have on the islands’ businesses.
The results are published against the backdrop of EY’s latest ITEM Club research, which shows the UK’s forecasts for economic growth have been revised down, from 2.6 per cent to 0.4 per cent in 2017 and from 2.2 per cent to 1.4 per cent in 2018.
Assessing the impact
The shifting economic and political landscape is recognised by Channel Islands organisations - nearly three quarters (73 per cent) say they have already begun a review of the likely impact of Brexit.
The results show respondents from the private equity, real estate and governmental sectors are leading the way. However, this means more than a quarter (27 per cent) have not yet begun to look at the effects Brexit might have on their organisation, while 62 per cent don’t believe it will result in their business being at risk.
Nearly half (45 per cent) of respondents working in asset management, private equity and real estate do not foresee a change in fundraising through Channel Islands’ structures. Nearly one quarter (23 per cent) think there will be an increase and a further quarter (23 per cent) think it will remain unchanged.
Only nine per cent believe there will be a decline in fundraising through Channel Islands structures.
EY’s Channel Islands Managing Partner, Andrew Dann, said; “For the islands’ continued success it is essential that strategic, business and operational models are assessed and evaluated on the basis that the UK will leave the EU definitively within the next three years.
“The UK faces a period of prolonged uncertainty over the next few years, which is reflected in the EY ITEM Club’s revised assessment of its economic prospects.
“However, it’s positive to see Channel Islands organisations already recognising the opportunities post-Brexit. We hope this report will be a prompt for other organisations to begin scenario planning, so they are best positioned to leverage the opportunities and mitigate any threats as a result of the Brexit vote.
“Businesses should recognise that whilst they see opportunities their competitors do too.”
Impact of Bexit
Asked what Brexit will do for the Channel Islands, nearly a quarter (23 per cent) of respondents in Guernsey and 13 per cent of respondents in Jersey believe Brexit will have a positive impact on the Channel Islands.
However, 40 per cent remain unsure whether Brexit will have a positive or a negative impact.
More than two thirds (70 per cent) of organisations who responded do not believe enough is being done to secure the islands’ future relationship with the EU.
They are more confident when it comes to the islands’ future relationship with the UK - 60 per cent feel enough work is being done to secure it.
For the full Channel Islands Brexit report click here