03 April 2018
More than half of London’s small businesses have seen their revenues increase since the Brexit vote, beating the rest of the UK in spite of jitters over investment and fundraising, according to a survey to be published today.
Some 58 per cent of the capital’s small and medium-sized enterprises (SMEs) have grown revenues since the EU referendum in June 2016, according to a survey of more than 1,000 UK firms by serviced office firm Citibase.
The figures show a marked improvement from a year ago, when the same survey found only 21 per cent of smaller firms reporting a revenue rise.
The figures show London firms significantly outpacing the rest of the UK, with a national average of only a third of firms saying sales have increased.
Some British firms have enjoyed more business in the past two years as the pick-up in the global economy has coincided with the devaluation of sterling after the Brexit vote in June 2016. The Bank of England has previously described conditions as a “sweet spot” for exporters in particular, with no change so far in the trading relationship with other nations.
However, the survey also shows uncertainty around the future relationship is causing nerves around investment. The Bank in February said its calculations show investment has been around £7bn lower than they would have been without the Brexit vote.