Two years after the divorce between London and the EU, the United Kingdom is starting 2023 in a climate of crisis and constant inflation, exacerbated by the overall global economic slowdown.
To get a clear and detailed overview of post-Brexit, we interviewed Pietro Marini, a chartered accountant at the London office of Kelmer Group.
Pietro, what is the current state of the British economy?
Currently, we are in the midst of Brexit, but the new economic framework has started to show its inefficiencies since 2022. In fact, as soon as the global pandemic ended, all the issues previously attributed solely to Covid are now clear and direct consequences of Brexit.
Shortage of personnel and the government’s difficulties in responding to the challenges posed by the country’s exit from the EU are just some of the complexities that have arisen between 2022 and the beginning of 2023.
It is an apparently drastic situation, but it also presents weak signs of recovery: the government of Rishi Sunak, having identified the main shortcomings of the country’s economic system, will inevitably be called upon to react. Customs disruptions, obstacles to trade, and a visa system that proceeds with hiccups are issues that need immediate solutions.
Brexit, after all, is more of a guideline than a well-defined set of rules. Therefore, it will take time to define all the operational aspects efficiently.
What is the reaction of key companies in the British industry and which sectors have been most affected?
In the first part of 2022, in response to the fiscal adjustments imposed by Brexit, several companies tried, without success, to circumvent the regulations to avoid making structural changes to their operations. It was only in the middle of 2022 that society seemed to begin to adapt to certain procedures, and the business machinery also appeared to be getting back on track.
The entire world of investments is experiencing a sharp decline. Investing in England is no longer as secure and lucrative as in the past, and the multitude of changes brought about by Brexit is feared to affect business plans, costs, and potential economic returns.
The sectors most affected by the UK’s exit from the EU are undoubtedly retail, construction, and transportation.
Not surprisingly, bars, restaurants, and shops, which have always relied on low-skilled labor, have faced significant difficulties when there was a significant decrease in personnel following Brexit.
Are there any positive elements, if any?
It was well known that the UK would have to face the ‘boomerang’ effect of Brexit. Although the situation seems to have improved compared to last year, the current difficulties still require effective solutions and interventions from the government.
The positive aspect is the ‘screening’ effect: those who approached the London market in an approximate manner in the past are now forced to take a step back. Those who ventured into investment activities without being sufficiently solid or structured now lack the capacity to handle higher costs and risks.
In this sense, Brexit has had a ‘deterrent’ effect in discouraging reckless entries into the UK market.
This entry barrier has changed the entrepreneurial and commercial fabric of the country and has made the business environment more stable by lowering the level of competition.
Undoubtedly favorable circumstances for those looking at the UK market.
How has Kelmer adapted to the post-Brexit scenario and what changes have there been in its services?
Brexit has certainly given a new boost to the consulting sector. We have seen a significant increase in requests for managerial consulting.
Kelmer Group’s core business has always been to accompany the client throughout the entire project implementation process. So it has been relatively easy for us to adapt to this type of request.
The support services we provide to companies now include a type of strategic consulting that involves working closely with clients to navigate the challenges and opportunities