With the PM recently sending out a formal request to the EU for a delay on Brexit until the end of January next year (31st January 2020), the future of Brexit remains unclear. This continuous state of Brexit limbo has had a considerable impact on UK businesses; affecting the growth in the value of both small and big businesses.
Whilst this uncertainty has impacted numerous different industries, there are certain businesses that could benefit significantly from Brexit, and use the country’s break from the EU as a way to flourish and grow. These industries could further provide key areas for the post-Brexit UK to thrive independently from the EU.
Exporters (to Non-EU Countries)
Some have claimed that a weaker pound will benefit certain businesses in the UK. This includes small exporters that have been able to compete with other countries on price. Additionally, many claim that Brexit could also generate new opportunities for trading within the country.
Those in the trading industry have stated that Brexit is an opportunity to push both the value and supply for British products higher than they have previously gone in the EU. From 2016 to 2017, exports from the UK to China increased by 29%.
Tails Trading’s Siddharth Shankar has claimed that “We know from experience that there is a huge demand for quality, British made products in Asia and we think Brexit will help to push the supply and value chain much further than Europe.”
The Rental Market
More and more households are looking to rent properties, rather than potentially overpay for a property in an uncertain market. A large portion of homeowners in between homes are preferring to rent and would rather wait to see the full impact of Brexit before moving into their next home or getting a new mortgage altogether, potentially with more favorable house prices and interest rates.
With mainstream banks showing more caution towards lending to businesses and mortgages, those looking to access finance are having to consider alternative finance options from more specialist lenders and alternatives, including business capital, bridging and development finance.
This is particularly attractive to those who fall outside of the typical banking criteria such as the self-employed, contract workers and those with small deposits.
“Specialist lenders are able to take a more alternate view than mainstream banks, and instead look at things on a project basis and potential value, not just their credit score,” explains Ashley Ilsen of Magnet Capital.
Start-Ups in the Tech Industry
To say the least, the UK’s tech sector is booming, being world-leaders in the fin-tech industry, with former PM Theresa May stating “the UK is a global tech powerhouse,” and that “these companies are delivering significant economic value to the nation through the investment they raise, the jobs they create and the innovative products and services they deliver.”
The UK’s tech industry has experienced continual growth, even through the past Brexit-limbo years. Those in the industry have claimed that start-ups in the tech industry will remain resilient throughout Brexit, and could become an invaluable asset to the country as it leaves the EU.
“Brexit is offering a lot of opportunities for Fintech companies and start-ups,” explains Alfie Usher of Forces Compare. “We have seen a huge number of alternative lenders and insurers who are raising funds and vying for new business.”
The Medical Tech Industry
A valuable asset to the UK is its health and medical sector, booming with entrepreneurial potential. Professionals in the medical technology sector have commented that the EU is quite traditional and conservative in their approval of new medicine, which can lead to a restricted level of innovation throughout.
Some within this field are hoping that by being released from EU restrictions surrounding the health and medical industry, Brexit will lead to a boost in innovations. In 2017, the UK attracted the largest amount of investment into life sciences throughout Europe. Those in the industry have predicted these levels to rise post-Brexit.