Brexit: a shock to the economy we could do without

Written by Lisa Stanley Mann on 14th June 2016

With the EU referendum just 10 days away, there’s growing uncertainty as to which way the vote will eventually swing. A Brexit vote seems more likely with each poll result.

We’ve given you our ‘remain’ reasons in this earlier blog, and now we’re publishing the views of a number of industry experts – which, btw, are also all in the remain camp.

koXqddvQ-2

Bruce Davis, Founder, Abundance

“The real economy of the UK will be better served by a financial system which is integrated and diversified by its close connections to the EU, just as you would desire with other globally significant markets.

“We live in an increasingly interdependent world and our financial services are considered world leaders for innovation leading the way on the development of p2p and crowdfunding as well as other forms of ‘fintech’. The growth of those innovative companies will be curtailed if we are not able to compete in our closest markets on equal terms.

Those who think we should be trading our financial services with the US would do well to look at the mess of bureaucratic complexity they have created there for new forms of financial innovations. The EU presents a very clear model for expansion and initiatives like the Capital Markets Union will ease that process of UK financial businesses expanding sustainably in Europe still further.”


john-ditchfield

John Ditchfield, Partner, Castlefield Advisory Partnership

“Brexit is a very complex and uncertain prospect as there is very little in economic or social history to use as a guide to the consequences of leaving a major trading block such as the EU. Generally the trend globally has been for more economic and financial integration between nation states so Brexit is something of a leap into the unknown.

“As a result most people who work in finance and investment are likely to be opposed simply because uncertainty and instability are not good things for markets and are typically viewed very negatively. Even if the long-term economic impact of a vote to leave is a positive one in the short and medium term individuals with invested capital, through ISAs and pensions, are likely to see those assets fall in value and possibly quite considerably.

“In my view this is one shock to the economy we could do without and I don’t see that the case to leave has been so well made we should take this risk now.


 

Paul Ellis Ecology

Paul Ellis, Chief Executive, Ecology Building Society

“Voters have to consider many issues to decide whether we should leave or remain in the EU.

“As a building society with a mission to build a greener society we recognise that the EU has played a leading role in improving the UK’s environmental standards and holding the UK Government to account on issues such as air and water pollution, waste and recycling, energy efficiency and marine protection.

“The recent Paris agreement showed what can be achieved when nations work together. As the EU begins the process of ratification of the treaty it’s never been more important for us to work together with our European partners to tackle global climate change.”