LONDON – British businesses look set to cut investment drastically for the coming ten years due to factors arising from Brexit, even if Prime Minister Theresa May gets a deal to ease the country out of the bloc, as per business community sources.
Business investment was forecast to fall by an annual 1.0 percent in 2019, the British Chambers of Commerce (BCC) said.
Lesser investment leads to lesser productivity which in result affects the factors of production slowing down the economy.
The biggest negative factor for the UK’s economy is that many businesses / companies have permanently transferred their investments with no short term plans of considering doing direct business operations in UK.
The BCC said that the diversion of resources to prepare for the risk of a no-deal Brexit and the high up-front costs of doing business in Britain, as well as questions over Britain’s future ties to the EU, would limit any quick investment rebound.
Prime Minister Theresa May expected to ask lawmakers once again to back her Brexit plan this week after they rejected it twice previously.
Prices of property in London has fell by 1.1 percent with property prices rise the lowest in other cities compared to the same period for past years as per sources of real estate business.