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 Scotland, the survey had 132 respondents and revealed the highest percentage (32%) of businesses with plans for international growth outside of the EU over the next twelve months compared to other regions in the UK. More comparably, one in four Scottish businesses revealed plans to grow internationally, but inside 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. We 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 Scotland, 25% of businesses surveyed were taking financial assistance in the form of overdrafts, and while 66% said it was for cash flow purposes, 54% added that it was also being used for overheads.
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 our survey, one in four of Scottish businesses said that currency risk is of greater concern now than it was two years ago – the highest number out of all of the surveyed regions. When asked about the measures they take to manage risk exposure, 20% of Scottish firms admitted that despite knowing they are exposed to risk, they do not take any action to manage it.
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 ChamberFX by 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. Our 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 Niall on niall.handy@moneycorp.com or 0131 322 6558
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British Chambers of Commerce
The British Chambers of Commerce (BCC) sits at the heart of a business network that spans the length and breadth of the UK, with links to markets across the world.
