Brexit’s uncertainty has had a major impact on the productivity and investment for UK firms, a UK academic has told a public lecture at the Central Bank of Malta.
Professor Paul Mizen from the University of Nottingham told the audience that this was one of the key findings outlined in the monthly Decision Maker Panel, assessing UK firm’s perceptions on the business environment.
In addition to the impact on productivity and investment over the last three years, the firms had also said that Brexit’s uncertainty was providing a long term shock to their effectiveness and that the impact depended on the links to Europe.
During the public lecture entitled ‘‘Are we nearly there yet? Evidence from business expectations and uncertainty about Brexit’, Professor Mizen said that, ‘it has affected some firms more than others depending on the strength of their links to continental Europe. In particular, uncertainty has been higher in industries that are more dependent on trade with the EU and on EU migrant labour.’
The lecture was part of a three-year agreement between the University of Nottingham and the Central Bank of Malta.
The United Kingdom is expected to leave the European Union on October 31st with or without a separation deal with the bloc.
Currently, the UK Supreme Court is determining if the UK government’s decision to prorogue (close) Parliament was done lawfully.