Why the UK remains one of the “best for business” despite Brexit worries

*This content is brought to you by Sable International, specialists in securing secondary residency and citizenship for South Africans. Sable International can help relocate yourself and your family, along with your business to the UK.

By Ashley Deakin

Ever since June, when Britons voted to leave the EU, analysts, economists and armchair pundits have predicted the demise of the UK economy. While the Pound has depreciated and growth has slowed, Forbes Magazine still ranks the UK as one of the top places to do business.

The Forbes Best Countries for Business list

Every year Forbes grades 139 countries on 11 factors, including: Innovation, taxes, technology, property rights, corruption, red tape, investor protection, freedom (personal, trade and monetary) and stock market performance.

The list, now in its eleventh year, is based on data gleaned from Property Rights Alliance, World Bank Group, the World Economic Forum, Transparency International, Freedom House and Heritage Foundation.

With a wide scope and respected sources, the list is a reliable indicator of where countries are in terms of their perceived and actual business friendliness.

The UK climbed from 10th position in 2015 to 5th in 2016. This may come as a surprise to many who have been predicting the UK’s allegedly inevitable demise in the run up to a full-scale Brexit. What this rating shows is that many of the fundamentals of the British economy remain intact, with or without EU membership.

How did the UK lift itself, despite Brexit woes?

Let’s compare four key metrics from 2015 and 2016:

Although it has taken a slight step down in terms of innovation, the reduction of tax on businesses and increase in monetary freedom has enabled the UK to foster and improve corporate conditions.

Since 2010, the UK has put a concerted effort into reducing Corporation Tax as well as the red tape around starting and running a business in the UK. These efforts are beginning to bear fruit and business people from all over the world can start to take advantage.

A weaker Pound can be good for business expansion

The Pound has been under some serious pressure since the Brexit referendum in June. Just take a look at the graph below:

One can choose to read this data in several ways.

We like to look at this decline in the Pound as offering opportunities to business from outside the UK to establish a presence in one of the most developed and vibrant markets in the world.

Despite these currency woes, GDP in the UK has remained one of the fastest growing in the G7. This makes it an excellent place for business people from other English speaking countries, like South Africa, Australia, New Zealand and even the United States, to get a foothold there.

The fundamentals of the British economy in our, and many others’, view are still positive.

The fact that the UK government is dealing with the problems of an overblown welfare system as well as a tricky exit from Europe, head-on, means that the economy should be able to weather the many storms that lie ahead.

Expand into the UK

At Sable International, we understand the detailed processes involved in relocating your business to the UK. With our accounting expertise and global reach, we can help you make your business a success in the UK.

We have operated in this space for over two decades and have an expert understanding of the many roadblocks involved in international finance and international migration.

To successfully establish operations in the UK, you’ll need a pioneering outlook and an experienced network of local support. Our UK business relocation service provides just that – services that take the logistical and administrative hassle out of moving your business abroad.

• Send an email to [email protected] or give us a call on +44 (0) 20 7759 7553 to find out how you can expand your business into the UK. Ashley Deakin is a qualified Chartered Accountant and is Chief Operating Officer of Sable International.