So we are out and the shockwaves will continue for a long time – one thing is reliable however that the pollsters got it wrong once again this week! With the daily newspapers and social media going into a frenzy it is difficult to find an unbiased opinion anywhere. In the short and medium terms it seems certain however that Britain will attract less foreign investment, will produce fewer services and goods and even possibly plunge back into a recession. To pretend that this decision will not have repercussions for Britain with all its trading partners within and outside the European community is naive. The strength of Britain as Europe’s 2nd biggest economy may have resulted in the idea that Britain could go it alone, patently it cannot.
The immediate effect is that the pound has sunk to a new low with share prices tumbling having a knock on effect on the economic and political scene in many EU countries. For everyday life, it means import prices will go up (and costs to British businesses) but of course exporters will get a boost as their exports become more competitive in overseas markets.
Helen Dickinson, CEO of the BRC (British Retail Consortium) commented: “Retailers should be prepared for the possibility of significant swings, particularly in the exchange rate and consumer confidence”.
Further comment will follow next week.