Brexit is an 'unmitigated disaster' that has damaged UK investment, former Barclays chair says


Many international companies are withholding expansions, stalling investment plans and charting moves out of the U.K. as uncertainty reigns over the fate of the country and its status in relation to the EU.

And British firms have diverted $10 billion of investment to the EU due to Brexit, a report from the London School of Economics revealed last month. EU businesses have cut their spending in Britain, leading to losses for the U.K. of more than $13 billion to date, and the report said that figure may rise.

Consulting firm EY found that financial services firms plan to move $1 trillion in assets out of the U.K., and one study found that EU exports to Britain could halve in the event of a no-deal Brexit.

Still, a number of global firms continue to show confidence in the U.K., with major investments for new offices and headquarters coming into London from the likes of Apple, Google and Facebook. As for the pound, forecasters are divided — it could either soar or tank as far as 25 percent, experts say.

—CNBC’s Holly Ellyatt contributed to this article.


Please enter your comment!
Please enter your name here