Double Whammy – Brit Businesses Battle Brexit And Covid-19

With the potential negative impact of a no deal Brexit compounded by the economic effects of the Covid-19 crisis, the mood music for much of British business is ‘there may be trouble ahead’.

Even organisations which were well-prepared before the pandemic struck are feeling jittery ahead of the end of the transition period – now less than six months away.

With stockpiles depleted, staff drafted in for Brexit paid off and cash reserves low, some companies are struggling to formulate any type of workable contingency strategy in the wake of the worst crisis in generations. In fact, the Institute for Government warns 61% of firms have made no plans whatsoever.

However, although it’s a struggle to pick out positive news from the doom and gloom, some firms and sectors coping better than others and adapting in agile and innovative ways.

Let’s take a quick temperature check.

Pub problems

Wetherspoons pub chain boss Tim Martin has been one of the most outspoken, swashbuckling Brexiteers, publishing regular polemics that predicted a period of renewed splendid isolation after Brexit.

However, he’s suffered charges of hypocrisy as the chain is heavily reliant on imported workers and criticism increased considerably during the health pandemic because of a perceived lack of care for staff, amongst other faux pas. There’s now a Neverspoons app that allows Brits who want to avoid his outlets to find independent bars where they can spend their cash in good conscience – a potent reminder that ethical spending is a reality no matter how much value for money your offering delivers.

New business models

Many retail businesses switched swiftly to focus on their online incarnations, and while this hasn’t entirely replaced the spending lost due to a lack of physical footfall, at least it has offered some sort of safety net until brock and mortar stores have reopened recently.

But what of small independent retail entrepreneurs used to travelling and trading freely across Europe with no impediments?

It’s still unclear how these types of British businesses will operate across EU borders from next year onwards, but some enterprising owners might look to migrate.

For instance, realtors like Property Lisbon might see a surge in demand for Portuguese Golden Visa properties. This is a ‘citizenship by investment’ scheme whereby non-EU investors can gain Portuguese (and by default EU) citizenship in six years, with the only requirement being a property with a certain cash value and spending a few days in the sunshine each year.

In other news, consumer good giant Unilever has announced that it will retain a presence in the UK instead of moving all operations to the European mainland, which is some cause for relief.

But this is small beer in a febrile environment where many British businesses are desperately hoping that some sort of positive deal can be brokered between Brussels and Downing Street before it’s too late.

Which British businesses do you think will survive and thrive post-pandemic and after Brexit? Share your thoughts in the comments section.