Brexit business leaders point to boost for business

June 24, 2016 5:11 pm Published by

Brexit business leaders point to boost for business

  • 24 June 2016
  • From the section Business

Picture of Anthony BamfordImage copyright
JCB

Image caption

Anthony Bamford says leaving the EU will lead more freedom to trade elsewhere

Britain’s Leave vote will lead to a healthier economy, according to pro-leave business leaders.

They said less red tape would improve productivity and increase global competitiveness.

And it would enable UK firms to do more business with firms outside Europe, they added.

“We should look ahead to opportunities to trade more freely with the rest of the world,” said Lord Bamford, head of JCB Group, which makes heavy equipment.

While some economists have warned that Britain could be heading towards a recession as the result of a leave vote, others predict stronger growth.

“We can look forward to faster rates of economic growth as we embrace the world economy,” John Hearn, economist at the London Institute of Banking and Finance said.

“The fall in the exchange rate benefits UK exporters by lowering prices and helps the domestic producer by making their products more price competitive and does not affect the rate of inflation: win win win for the UK economy.”

‘Selective’ immigration

Peter Hargreaves, a founding partner of retail investment company Hargreaves Lansdown, said Britain could encourage the right type of immigration. Mr Hargreaves has been a prominent campaigner for the leave campaign and a major donor, although the firm he co-founded has remained neutral on the vote.

“We need immigrants, lots of them,” he told the BBC.

“But we need to make sure it’s the type of immigration we want so we can be selective and take the people that will make us prosper.”

Other business figures that campaigned for a British departure from the EU included vacuum entrepreneur James Dyson and Tim Martin of the JD Wetherspoon pub chain.

Most leaders of the UK’s largest firms came out in favour of a ‘Remain’ vote.

But some well-known voices have suggested that the British economy will not be adversely affected in the long term by leaving the EU. The investor Neil Woodford wrote in his blog that the vote to leave was not ‘as negative a development’ as the market’s first reaction indicated.

The FTSE 100 initially fell by around 8% on Friday morning, but regained some of its value later in the day to close 3.15% down. The pound ended the day 7.5% down against the dollar.

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This post was written by FSB News