Is Brexit really a threat to the economy?

 

 

Is Brexit really a threat to the economy? 47% of boards haven’t considered it.

 

For our April edition of Quick Question, conducted by us in conjunction with the ICSA to delve into contemporary issues within the company secretarial market, we polled a selection of senior company secretarial professionals and asked them if their boards have considered the result of the EU vote.

 

In a climate of uncertainty surrounding the potential results of Brexit, especially with the centrality of ‘the economy’ as a recurring topic of discussion in the ongoing debate, it may come as a surprise that according to our wide sample, at least 47% of boards haven’t considered the impact of the looming referendum.

 

A true projection of the implications of Brexit on the United Kingdom is much sought after and we are far from a consensus.

 

Neil Woodford, £8bn fund manager with stakes in GSK, BT and BAE Systems, has recently gone on record to denounce the Brexit debate: “It’s really hard to see any credibility in an argument to stay or to leave constructed around economics. It’s a nil-sum game. If we stay or leave, the fundamentals of the economy will be relatively unmoved.”

 

Looking at the results of April’s Quick Question, we can see that:

  • 47% of boards haven’t considered Brexit
  • 41% have considered the implications
  • 12% of senior company secretarial professionals were unsure

 

If you are to look at this data as a representation of Brexit’s threat to our economy, you may come away feeling none the wiser. Whether Brexit is a legitimate threat to our economy – or indeed whether ‘the economy’ is an inconsequential branch of a more political subject matter – is yet to be determined, even at the top level of Britain’s largest companies.

 

To investigate further into the results of our Brexit-themed poll, please read the Quick Question section of the ICSA’s April 2016 edition of the Governance + Compliance magazine. If you’re a UK-based senior company secretarial professional and would like to participate in our future Quick Question articles, please do get in contact on team@core-partnership.co.uk or call us on 020 3589 0333. 

17 March 2016

 

 

written by Jon Moores
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