Category Archives: Brexit

Brexit, News, Technology

Brexit to widen the tech gap between agile businesses and those that will struggle to survive

British business leaders do not believe their organisations are fully up to speed with developing technologies – with only around half (53%) saying they are fully utilising their technology advantage to win business, run efficient systems and attract the best talent, according to new research from ThoughtWorks.

With businesses concerned about how Brexit could have an impact on data protection, changing regulation and supply chain disruption,[1] ThoughtWorks asked a nationally representative sample of 1,026 business owners how fully they used technology to achieve growth and competitive advantage. The findings suggested that many businesses were increasingly concerned that they were falling behind in terms of technological development.

Tech agility linked to post-Brexit growth outlook

For the 47% of businesses that admitted their use of technology was not that sophisticated, 41% said they were trying to improve their business’s technological capabilities but were still in some way behind the competition. Furthermore, 6% of respondents said that their lack of technological development was holding their business back from growing.

Significantly, the level of tech agility of UK businesses correlated directly with how they thought Brexit would impact their business in 2020. Those agile, tech-driven businesses were far more likely to see Brexit as an opportunity to grow – 47% predicting growth opportunities to move into new markets and 19% believing they would be able to grow market share in existing markets. In contrast, those businesses that said their tech maturity was holding them back were far more likely to say Brexit would force them to put growth plans on hold (16%) or to downsize – and to pull out of some key markets (10%). The research suggests Brexit could be a catalyst that widens the tech gap in Britain, between those agile enterprises that will grow in 2020 and those struggling with technology that will fall further behind.

Bleak mid-Winter ahead for retail

With the demise of Mothercare, and Marks & Spencer reporting a fresh slump in clothing sales[2], ThoughtWorks’ research shows retail emerging as the sector where fewest business leaders believe they are fully using technology to win business, run efficient systems and attract the best people (35%). Linking tech agility to Brexit outlook again, retail was also the sector where most business leaders said that, in the 12-months following Brexit, they were preparing to downsize and for the prospect of losing business.

While it is perhaps unsurprising that businesses in the media and tech sector were the most likely to say they fully utilised their technological advantage, even here more than a fifth (23%) of businesses admitted that they were behind the leaders in their market and could take steps to improve their agility.

Tech on the Tyne

The ThoughtWorks study also explored business opinion across the UK’s major cities. Whilst London and the South East have traditionally dominated the regions for tech investment – with London companies securing $4.8bn (£3.8bn) in 2018[3] – the new research shows that Newcastle is the city where the highest proportion of business leaders say their business makes full use of their technology assets in terms of winning business, improving systems and attracting the best people (77%). Indeed, London only just beats Birmingham into second place (66% Vs. 65%).

Tech gap in Scotland

While most cities in England and Wales (apart from Liverpool) saw at least half their businesses taking full advantage of their technology assets, businesses north of the border seemed to be lagging behind. Only 47% of businesses in Glasgow – and 42% in Edinburgh – said they were fully utilising their technology advantage. Whilst political considerations around Brexit have been a cause of acute concern in Scotland, the new research suggests tech agility is also playing a big role in shaping business outlook for the period after Brexit – with businesses in Glasgow and Edinburgh least likely of the 11 cities surveyed to predict opportunities to grow into new markets in 2020 (Glasgow 18%, Edinburgh 17%).

Luke Vinogradov, Digital Transformation Principal, ThoughtWorks commented:

“Surrounded by change and uncertainty, organisations are realising they may not be taking full advantage of technology. Some have yet to start, others have focussed narrowly on digital customer experience, because it’s very visible and actually it’s a great first step. However, modern digital businesses already at the top of their game know that the kind of capabilities that have driven their success don’t stop there.

“Across the organisation, making tech work for you means making choices. New ways of working can align your whole business around customer value; data can help you to build engagement and advantage; platform thinking and a test-and-learn approach will maximise the impact of your investments; and a delivery mindset will help you cut through the complexity and get things done.

“All of these digital capabilities can help you keep up – the right balance will ensure you get ahead.

“As a trusted partner for many leading organisations on their digital transformation journey, ThoughtWorks can help you make the right choices, not only addressing today’s challenges but giving you the capabilities you need for a confident future.”

[1] https://www.bbc.co.uk/news/technology-49980327

[2] Marks & Spencer profits plunge as clothing sales continue to fall – https://www.theguardian.com/business/2019/nov/06/marks-and-spencer-profits-plunge-clothing-sales-fall

[3] https://www.chroniclelive.co.uk/business/business-news/record-tech-investment-sees-newcastle-16379007

Brexit, European News

Nearly half of UK businesses believe Brexit will have a long-term positive impact

A new state-of-the-nation study into how UK businesses are prepared for Brexit, has revealed a staggering 43% of businesses believe the process of exiting the EU is currently having a positive impact on their business, while 34% feel it hasn’t had any impact at all.

Commissioned by global sales, negotiation and communication experts, Huthwaite International, the report shows that post-Brexit business prospects remain positive, with 70% of businesses believing their growth potential will prosper post-Brexit, regardless of the outcome.

When looking at what worries businesses most about the UK leaving the European Union, economic stability, uncertainty around future trade agreements and international trade ranked as the highest concerns.

Improving negotiation skills also ranked as the biggest priority amongst businesses before the Brexit deadline, with many sighting it to be a key priority when it came to safeguarding profits and reducing overheads.

Tony Hughes, CEO at Huthwaite International said:

“Gaining the skillset and knowledge to survive this economic uncertainty is vital for business success. The UK is packed with ambitious and prosperous companies that in theory should flourish regardless of economic uncertainty, however the importance of obtaining the core skillsets to flourish shouldn’t be underestimated.

“One of the few certainties the UK faces is that, for selling organisations, things are getting tougher. As buying organisations entrench, delaying or even cancelling purchasing decisions, sales teams across all sectors and markets are having to up their game. This means sophisticated negotiation skills aren’t just important to ensure the UK secures a quality deal with the EU, but also form the fundamentals for ensuring business success across the UK too.”

Huthwaite International has published a white paper looking at five key elements businesses can implement to increase sales success in times of economy uncertainty. These include:
• Confidence through coaching
• Aligning capabilities
• Utilising your service resources
• Negotiation skills
• Effective qualification

To access the full research white paper, please visit: https://info.huthwaiteinternational.com/improving-corporate-negotiations.

Brexit, Cybersecurity, Data, News, Technology

Data Privacy & Cyber Security are top Brexit countdown worries for UK Business Leaders

Technology issues are now seen to be the biggest threat to business continuity in a post-Brexit world, according to new research conducted among UK business leaders commissioned by ThoughtWorks.

Feeling exposed to – and unprepared for – a range of pressing data safety and cyber risk issues (33%) was a greater concern for 2020 than a range of specific Brexit challenges – such as the weak Pound (24%), supply-chain disruption (20%) and the employment of EU citizens (22%).

With Michel Barnier urging UK businesses to safeguard themselves against cyber threats in the run up to Brexit[1], ThoughtWorks – the global software consultancy – asked 1,022 British businesses which perceived threats to business continuity post Brexit they were not fully prepared for. Overall, 82% of firms identified one or more threats to business continuity as a result of Brexit, a view that was consistent across all sectors and major cities.

Of the 33% of business leaders that mentioned tech worries, the specific areas of concern comprised of:

● changes to the transfer of personal data between the UK and the EU (54%);

● vulnerability to cyber-attacks (42%);

● changes to the storage, purpose and processing of customer data (30%).

These findings come less than 18 months after GDPR was introduced, which has been followed by a series of widely-publicised data breaches involving major brands. Indeed, the survey suggests data safety becomes a bigger issue the larger the business. The larger companies polled were more than twice as likely than small businesses to see tech issues – including cyber-attack risks and data safety – as the biggest threat to business continuity in post-Brexit Britain (47% compared to 22%)[2].

Beyond tech fears, there were a number of additional financial and operational concerns for businesses in adjusting to the prospect of Brexit. Financial issues included the falling value of the Pound (24%) and disruption to flows of capital or changing investor appetite (14%). In terms of operational issues, many foresaw disruptions to their supply chain as a threat to business continuity (20%), whilst other business leaders were worried about access to talent – specifically, the employment of EU citizens in the UK – and UK citizens in the EU (22%).

Whilst London is often seen to be at the centre of Brexit debate, the ThoughtWorks research canvassed business leader opinion across the UK, listening to decision makers from more than 10 of the country’s biggest cities. The results show that whilst across all cities business leaders were uniformly worried about risks to business continuity, technology issues were a particular concern in England’s three biggest cities – London (44%), Manchester (39%) and Birmingham (38%).

Specific city highlights:

● Edinburgh businesses were the most likely to say they were concerned about exposure to cyber-attacks (25%). Beyond tech issues, firms in Edinburgh were also highly likely to worry about the prospect of economic protectionism and trade wars after Brexit (25%).

● London businesses were also worried about cyber security after Brexit (24%) but were slightly more likely to be concerned over changes to the storage, purpose and processing of customer data after Brexit (25%).

● More than a third of Glasgow firms (35%) forecasted tech issues as the biggest threat to continuity after Brexit – with nearly a quarter worrying about the safe storage of data (24%). Glasgow businesses were also the most likely to worry about storing data safely compared to any other UK city (21% Vs. national average 12%).

Every sector – except for the retail sector – saw data and cyber-related issues as the biggest threat to business continuity after Brexit. The import and export of goods slightly tipped the balance for businesses in the retail sector (36% vs. 35%). However, for all the other sectors surveyed, tech issues topped the Brexit worry list – with the public services sector coming top at 47%.

Other sectors where business leaders were particularly worried about the impact of tech-related threats to business continuity included; media and tech (40%); financial services (37%); retail (35%) and manufacturing (33%).

Jim Gumbley, Head of Cyber Security, ThoughtWorks UK commented:

“After a period of unprecedented economic and political uncertainty, we wanted to ask businesses around the UK how prepared they felt for the key operational, financial, regulatory and tech issues that could result from Brexit. Whilst data security and cyber risks were seen as top concerns, it is important to stress that they are no longer just tech issues. Given what’s at stake for businesses, in terms of revenues, brand equity, trust and reputation, security and processes surrounding data need to be factored into the highest levels of corporate strategy.

“Whether UK businesses are pursuing their own development initiatives or investing in tech-driven start-ups, data security must be factored in from the get go. From our London and Manchester offices, ThoughtWorks is helping major brands spanning a range of industry sectors to put data and security at the heart of their thinking and to develop a culture of innovation and agility so they can go towards change and market uncertainty .”

Brexit, Logistics, Recruitment

Brexit uncertainty sparks staggering rise in demand for customs experts

As a result of a staggering 183% rise in demand for customs professionals, WR Logistics, one of the country’s foremost transport & logistics recruiters, has warned businesses and authorities to ensure skills shortages are addressed as uncertainty around a no deal Brexit continues.

The upsurge, noted when comparing company data from August – October 2019 with the first quarter of the year, was especially visible amongst those with experience of the customs clearance process, documentation knowledge, and tariffs & rate negotiation skills

With a potential no deal Brexit meaning that workforces may face unprecedented challenges, the TUC has stated that there will be a need for ‘up to 5,000 extra people’ to cope with Brexit-related strain. However, this has not been reflected in government plans, with Treasury Secretary, Rishi Sunak, suggesting only 900 more staff would be put in place.
Commenting on the rise in demand, Lewis Richards, Managing Director of WR Logistics, said:

‘While many sectors are being affected by the possibility of a no deal Brexit, demand is already rising sharply for customs experts. If our company data is anything to go by, as we inch closer towards Brexit, this is only likely to increase.

“Employers we work with are desperate for professionals with awareness of customs tariffs and systems, with many looking to alleviate potential Brexit risk, and others using the climate of uncertainty to grow their businesses.”

“Ultimately, these workers play a crucial role in supporting the country’s infrastructure, so it’s essential that skills shortages are quickly recognised and addressed. By acting now, businesses can continue to shape the future of the country’s network and infrastructure, regardless of what happens after we leave the EU.”

Brexit, FInance

Brexit and US political landscape hitting sales pipelines & travel for UK and US

A survey of 500 finance professionals across the UK and US has revealed the impact of recent political developments on organisations’ sales growth and investment in travel.

Research released today shows 40% of organisations have seen a slowing of their sales pipeline since the Brexit referendum, with a further 32% reported as remaining static.

The survey was conducted by SalesTrip, the travel booking and expense management system that combines business travel, expense and operational data to demonstrate the impact of travel costs on company revenues.

In the run up to a potential Brexit, 62% foresee a need to cut back on company costs such as business travel. With 49% of organisations already reporting they have implemented a company-wide travel ban as a result, this company measure looks set to increase – despite 60% believing spend on travel is necessary for revenue and business growth.

In the US, other political dynamics are affecting corporate travel, with 50% of organisations having seen more restrictions to their employees’ s travel since President Trump came into office, and 50% reporting an increase in ‘no-go’ destinations. 43% have also seen an increase in travel-related admin and experienced more difficulties in obtaining visas for non-US citizen employees entering the US (36%).

“Organisations clearly need more certainty in these times of dramatic political change, and accurate data and visibility across their entire business is critical for leaders to keep the ship steady through uncharted waters, no matter the forces beyond their control,” said Manoj Ganapathy, CEO and Founder of SalesTrip.

Ganapathy continued:

“With most organisations now selling globally, we’re seeing a great demand for visibility of all travel data alongside customer and revenue data to easily understand where investment in travel reaps the most return for business, no matter what the political imperatives are.”

In the UK, 73% think that travel bans would be a thing of the past if they could better forecast business travel and expense spend. Being able to better manage and forecast spend will empower organisations to control costs throughout the year and remove the need for restrictive travel bans that ground sales teams and limit growth.

On top of this, businesses are struggling to justify ongoing investment with 39% of all UK and US companies reporting that business travel and expense costs are uncontrollable and unpredictable rather than tangibly contributing to business growth.

Only 30% of businesses believe they can ‘very accurately’ forecast travel and expense spend and almost half (48%) of organisations don’t have visibility of business travel and expense spend against ROI, which would help counter wider political uncertainty and changes in government policy and regulation.

Commenting on the impact of Brexit in the context of the business travel industry, Ganapathy added:

“There is no suggestion that the UK is expected to lose its position as an established global centre of commerce but as a result of Brexit, we are experiencing a precautionary, but temporary, sales slowdown. After Brexit, we can expect to see companies beginning to open up additional locations in Europe outside of the UK – the inevitable need for additional travel that this will create spells good news for the global business travel industry in the long term.”

Brexit, Business Investment, Business Reports

Business confidence falls further in Q3 amid continuing Brexit uncertainty

Following a brief respite at Q2 when business confidence held firm, the Savanta Business Confidence Index (formerly the Charterhouse Business Confidence Index) resumed its downward trend during Q3, reaching a new 6-year low of 45.

Larger businesses with annual sales above £1m continue to be the most confident group. However, despite a rally at Q2 that saw confidence increase by 4 points to 51, confidence among larger organisations slipped again at Q3 by 2 points t0 49.

Moreover, confidence among smaller established businesses, who represent the vast majority of enterprises by number, fell 3 points to finish Q3 at 44.

New start-ups remain the least confident segment on 43, although fledgling businesses nevertheless managed to retain their score from Q2.

In terms of geographic location, confidence decreased in 5 out of the 6 regions. This was most notable in Wales/South West and Scotland who recorded falls of 6 points and 4 points respectively to end Q3 as the two least confident regions. The 4-point fall in Scotland in particular resulted in an index score of just 38, an exceptionally low score even after taking account of the lower confidence levels usually seen in Scotland.

The most ‘optimistic’ regions are London and the North/North West, both on 47. Nevertheless, an index score of less than 50 means more businesses in both regions are pessimistic rather than optimistic about the current state of the economy.

Industry sector continues to be a stronger differentiator of sentiment than region, both in terms of the size of the quarterly shifts within a given sector and the degree of variation from one sector to another.

At Q3 confidence fell in 7 of the 9 sectors, with the biggest falls occurring in Transport (down 11 points to 42), Education (down 8 to 40) and Other Services (down 7 to 45).

The two sectors to record gains, 2 points in both cases, were Construction and Wholesale who ended the quarter with scores of 48 and 47 respectively.

In terms of age of business owners, the picture has turned on its head, with the under 35s being replaced by the 65+ group as the most confident. This follows a fall of 5 points among the youngest age group to 46 and a 2-point gain among the over 64s to 48.

Commenting on the findings Mark Dennis, Director of Savanta, said

“With uncertainty over Brexit continuing throughout quarter 3 it was too much to expect the quarter 2 plateau to be anything more than a temporary phenomenon. The results in quarter 4 will no doubt be heavily influenced by developments over the coming days which will determine whether the UK formally withdraws at the end of October or whether the uncertainty is set to continue with an extended deadline and potentially an accompanying General Election.”

Quarter 3 findings are from Savanta’s MarketVue Business Confidence programme (formerly the Charterhouse Business Confidence Survey), conducted among 3,144 British businesses from start-ups to companies with £1bn turnover, surveyed from 1st July to 19th September 2019. Indices are mean scores based on a scale of ‘extremely positive’ (100), ‘fairly positive’ (75), ‘neither positive nor negative’ (50), ‘fairly negative’ (25) and ‘extremely negative’ (0).

For more information please visit https://savanta.com

Brexit, Business Software, EU, North of England

‘UK Businesses would not have been ready for Brexit’, reveals survey

As the original deadline for Brexit passes today, new research from global software consultancy Thoughtworks reveals that almost two in three businesses would not have been ready.

The research reveals that almost two in three UK businesses (63%) admitted they would not be ready for Brexit by 31 October.  26% of businesses said they need a further 6-12 months to get their company Brexit-ready – it seems that the EU extension will therefore come as good news.

The national survey asked 1,026 business leaders how long it would take their business to adapt to the key regulatory, economic and data issues that will come as a result of Brexit.

There was little variation between a hard or soft Brexit on business readiness (37% for both scenarios). Only 14% of business said they were already fully prepared for Brexit –  and whilst this rises to 37% being ready by 31 October – the majority are calling for more time, with 9% of respondents saying they will never be ready.

The ThoughtWorks study also explored business sentiment across UK cities. Whilst London is seen to be at the centre of Brexit debate, it was firms in Leeds and Birmingham that were most likely to be fully prepared for the key impacts of Brexit (for both a deal and no deal scenario).

In Manchester, business leaders were most likely to say they needed an additional 6-12 months to be ready for the impact of Brexit on their company (39%).  Some were calling for even more time – around a quarter of businesses in the Newcastle said they needed until 2021 to be ready (23%) – and some businesses in Liverpool needed five years (13%). Looking at the regional picture, businesses in Scotland and the north were least likely to be prepared for Brexit on 31 October.

How long businesses need to adapt to the key regulatory, economic and data issues that will come as a result of Brexit

Already prepared 14%
By 31 October 23%
3 months 16%
6 months 13%
12 months 13%
2 years 6%
5 years 4%
10 years 1%
Never be ready 9%

How long businesses need to adapt to the key regulatory, economic and data issues that will come as a result of Brexit: Percentage of business that are ready now or will be by 31 October – by city.

  In event of a no deal Brexit In event of a deal Brexit
Leeds 57% 46%
Birmingham 47% 41%
Bristol 40% 29%
Cardiff 38% 33%
Nottingham 36% 34%
London 36% 32%
Glasgow 33% 36%
Edinburgh 31% 31%
Manchester 30% 33%
Liverpool 29% 29%
Newcastle 28% 22%

Brexit readiness by sector

Businesses in the construction sector were those most likely to say they would be ready for the impact of Brexit by the end of October – whereas those in manufacturing and the education sectors were least likely to be fully prepared. Businesses in retail (31%), health (29%) manufacturing (29%) were most likely to say they would need a further 6-12 months to adapt to the key regulatory, economic and data issues that they believe will come as a result of Brexit.

How long businesses need to adapt to the key regulatory, economic and data issues that will come as a result of Brexit: Percentage of business that are ready now or will be by 31 October – by sector.

  In event of a hard Brexit In event of a deal Brexit
Construction 41% 38%
Tech & Media 40% 40%
Health 39% 34%
Retail 35% 36%
Finance 35% 39%
Public Sector 33% 34%
Manufacturing 30% 30%
Education 29% 35%
Professional services 27% 20%

Brexit readiness by business size

The ThoughtWorks research also found that the size of a business also had a bearing on its perceived readiness for Brexit. Nearly a quarter of small  businesses (23%) said they were prepared for the upcoming deadline compared to just (7%) of larger companies[1].

Kevin Flynn, Director at ThoughtWorks UK commented:

“After a period of unprecedented economic and political uncertainty, we asked businesses around the UK how prepared  they were for the key regulatory, economic and data issues  they believed will result from Brexit. It is a concern that the majority of businesses surveyed  say they do not feel they are ready, and this changes little for the deal or no deal Brexit scenarios.

“In the weeks ahead, we will look more closely at how businesses plan to adapt to the new post-Brexit era. Supply chain disruption, employment of EU citizens, the falling value of the Pound and transfer of data between the UK and EU are key issues cited today as challenges for businesses. There will no doubt  be opportunities from market uncertainty and we expect to see the tech gap widen, as tech-centric agile businesses adapt quickly whilst those whose technology holds them back will likely fall behind or struggle to survive.”

For more information visit: www.thoughtworks.com

Brexit, FInance

Could remortgaging help save you thousands after Brexit?

While deals are thrashed out as the UK leaves the EU, what does Brexit mean for your mortgage? Here, Michael Usher, a mortgage expert at Michael Usher Mortgage Services, discusses the possibilities and expectations as we come out of Europe, and how remortgaging sooner rather than later could help save you thousands.

Brexit might have been on the agenda for a few years now, but that doesn’t mean anyone can tell you exactly what will happen once the UK has left the EU for good. However, what you can do is prepare by assessing your own finances to help mitigate any potential adverse effects on your income or mortgage repayments.

Before the referendum in June 2016, the Treasury predicted the average cost of a mortgage would increase by £1,000 a year. However, what happens with interest rates will be the marker for how repayments will fluctuate.

Unfortunately, there is no way of knowing whether these will go up or down because nobody can predict exactly how Brexit – deal or no deal – will unfold in the short or long terms.

The high probability is that in the short term, faced with the irregularity of what will happen when the UK leaves the EU, the markets will react and the value of the pound will decrease. In turn, interest rates will possibly be reduced to stabilise the effect this has on household incomes, but this depends on the Bank of England’s assessment of the situation at the time.

What we do know is that the Bank of England raised the base rate from 0.5% to 0.75% in August 2018, meaning there is a strong possibility that interest rates could rise. In fact, the Bank of England has suggested this might be the case in the long term. Therefore, a fixed-rate mortgage is something you might want to consider investigating so you know precisely how much you will be paying each month.

If you already have a fixed-rate mortgage, you will be making regular payments each month that will remain unchanged until the fixed-rate term expires.

Depending on your provider, and the terms of your agreement, this might transition to a higher percentage fixed-rate for the remainder of the term or to an advised percentage above the Bank of England base rate. If the base rate significantly increases, then the knock-on effect is so will your mortgage repayments. Therefore, it is worth making a note to review your mortgage, check the expiry date and investigate alternative providers a couple of months before your fixed-rate ends to ensure you get the best possible deal and aren’t overspending on repayments when it transfers.

If you’re concerned about what will happen with interest rates and prefer to know precisely where you stand with your monthly outgoings, but don’t already have a fixed-rate mortgage, then switching could be ideal.

Bear in mind that, if you are remortgaging your home, it is also possible to release funds from any equity you have in the property at the same time and add it to the mortgage amount. However, this will depend on various qualifying factors, including the length of time remaining on the mortgage, whether you can increase the term and whether you can afford the repayments. However, before making any commitments you should always consult a professional, such as an independent financial advisor.

Whatever the outcome of Brexit, reviewing your personal circumstances will go some way towards offering you control over your finances.

Brexit, News, Retail

People planning to spend less nationwide as Brexit approaches

A new study reveals low consumer confidence across the UK with people preparing to spend less in the coming months. The new Consumer Compass research by Savanta, the global intelligence business, draws on data from 2,000 consumers across the nation and shows that women and people aged 18 – 34 years old are feeling the pinch the most.

Savanta has been running the research since 2010, three times a year. The study shows that 34% of consumers have less disposable income in Q3 2019 – a 3 point increase from the 30% who were watching their pockets in Q1.

The picture now, pre-Brexit, is more positive than post-financial crisis a decade ago, with 32% of people feeling more confident about their financial situation, up from 25% in 2010.

However, when broken down by group, adults with children are as badly off economically as they were post-crash, with 1 in 10 families suffering in both 2010 and now; and the same is true to for Gen Z and Millennials. The fashion and personal grooming sectors have felt the force of this with 41% and 33% of the public saying they are spending less in those categories, up 5 points on Q1 2019.

Other key takeaways from the research:

  • ABC1 consumers; confidence in the economy is lower than it was in the post-credit crunch world of 2010 (9% drop in confidence since 2010)
  • C2DEs have an improved outlook for the economy (32% feel more confident about the economy, up 7%), but confidence in their own personal finances is static over the decade with only 1 in 5 feeling confident
  • Men, ABC1s and consumers without kids or dependents have the highest levels of insulation from the economy in Q3 2019 (33%, 27% and 30% saying they are unaffected by the economic situation, respectively)
  • There is a general improvement in personal finances since 2010 with the amount of consumers with more disposable income compared to the previous year increased by 13%
  • However, this has not converted unanimously to increased spending: only those groups that were the most confident in 2010 (men and people without dependents) have seen the level of insulation from the economy significantly increase over the decade (men: 33%, up 9 points, people without dependents: 30%, up 8 points)
  • Millennials seem to be valuing experiences more than ‘things’ with increased spending on holidays and exercise: 15% of 25-34 year olds are spending more on holidays, up 2 points on Q1, and 9% spending more on gym, up 4 points
  • Whereas middle aged people are spending more on staying in rather than eating and drinking out of the house (spend for eating / drinking in has increased 3% since February, and has decreased by 8% for eating out)

Oliver Fenton, senior consultant at Savanta, commented:

“Both consumers and business are displaying similar traits ahead of Brexit – some are better prepared for an economic downturn than others.

“While personal finances have, for the most part, improved since the financial crash, this has not converted unanimously to increased spending. Businesses who have identified the groups most likely to withdraw from spending in the face of heightened uncertainty, and how large these groups in their customer base are, will be best equipped for any Brexit outcome.”

Savanta is part of the Next15 Group.

Brexit, Business Reports

Businesses looking to stockpile as Brexit uncertainty looms

As the Brexit deadline approaches, a new survey commissioned by Coupa Software has revealed that, while the majority (96 per cent) of UK senior finance decision makers in large companies have been preparing for Brexit for the past year, the work to become post-Brexit ready is still an uphill battle. Respondents cited supplier relationships and spend visibility as top focus areas.

Of the 253 senior finance decision makers surveyed, 54 per cent cited supplier relationships as the part of their business most likely to be impacted by Brexit, above disruption with profits, customer relationships, and payroll. Furthermore, 51 percent of respondents said that on the day of Brexit, they expect to renegotiate contracts with their suppliers to return to business as usual. 

The survey also found that going into Brexit, nearly two-thirds of finance decision makers (63 per cent) said they lack complete visibility into their business spend, and 62 per cent said that they are not very confident in their company’s spend decisions. Their views on stockpiling are evidence of this – nearly 66 per cent say they feel stockpiling is an effective precaution for businesses in uncertain economies.

“In today’s environment, it’s imperative that businesses have the visibility and control they need to respond quickly amid economic uncertainty, and that’s no more apparent than what UK businesses face with Brexit,”

said Rob Bernshteyn, chairman and CEO of Coupa.

“Having modern technologies will help companies navigate these changes by empowering them to establish the right supplier relationships and spend smarter every day.”