Lawyers and accountants claim ‘Brexit’ will be bad for business

Delegates overwhelmingly believe that while a British exit could lead to more advisory work in the short term, the long-term effects were far more likely to have negative consequences.

Delegates also called for the ‘Stronger In’ campaign to highlight the UK balance of trade as a major area of exposure: Europe’s appetite for UK services has led to a surplus of around £20 billion. Currently a key strength for the British economy, this could become a significant weakness in the event of a Brexit that could take decades to resolve.

Hierons, whose clients include owner-managed businesses and private clients, chaired the debate focusing on the complex issues that professional services organisations could face if the British population vote to exit the EU on 23 June 2016.

Around 70 delegates of lawyers and accountants, representing a broad cross-section of professional services from across the UK, attended to hear speakers David Morley of Allen & Overy, Coutts & Co’s Alan Higgins, Sarah Long from Euclid Law and Ceris Gardner from Maurice Turnor Gardner. The event was hosted by the Professional Practices Association.

The popular image that the British economy is over-burdened by EU regulation was also challenged by delegates. According to the World Bank’s Ease of Doing Business Index* the UK is the sixth most competitive country in the world, ahead of both the United States and Germany. It was argued that EU regulation had not impacted the ability to start a business, resolve insolvency issues and enforce contracts.

Seminar chair Mark Douglas, a partner at Hierons focusing on M&A, joint ventures, contracts and general corporate and commercial law, said: “Every single delegate attending faces concerns from their clients about the impact of a British exit from the EU and what it could mean for them.

“At the very least, the levels of uncertainty surrounding this issue are already starting to impact the professional services industry. Our debate highlighted the very serious ramifications that a Brexit could lead to.”

Delegates also identified immigration as a big area of concern. The panel was unanimous in its conclusion that firms with an international workforce could be severely impacted. The existing rights of EU and EEA nationals to permanent residence might be grandfathered but this is by no means guaranteed. The surge in EEA and EU nationals applying for permanent residency cards since the change in law in November 2015 reflects the current atmosphere of uncertainty.

Mark continued: “The debate so far has generated little helpful guidance; we have to think about the future for our own firms. We have a responsibility to examine the facts and discuss themwith our colleagues, clients and families. This is the most important decision that will be made in a generation – it’s crucial that we make the right one.”