How Will Brighton Look After Brexit?

Over a year has passed since voters across the UK voted narrowly in favour of leaving the European Union. The people of Brighton and Hove voted overwhelmingly in favour to remain, but the result of the referendum was final. What happens next, however, is more of a mystery, as the outcome of the Brexit negotiations in terms of trade are still unknown.

The local economy is focused on a handful of industries – tourism, digital media and finance. Brighton’s biggest private sector employer, American Express, has its European headquarters located there and has over 3,000 staff in its office. They have not hinted at moving away from their current base in the near future.

Post-Brexit, there may be some anxiety over whether the company decides to stay on UK shores or move to the EU. Some companies, mostly in the banking sector, are planning on moving some jobs from the UK to mainland Europe. However, there may be some positives for Brighton’s business community.

Fewer Obstacles

One of the criticisms aimed at the EU during the referendum campaign was that being in the Union involved wading through a huge amount of red tape. In theory, this should make doing business far easier, with less paperwork making it easier for local businesses to trade with each other and overseas.

An indication of how the economy as a whole could fare will come from the markets. Many businesses who employ people in Brighton are listed on the FTSE 100 or FTSE 250. A look at data from LCG suggests that many of these companies are quite positive for now.

The fortunes of the Pound against the Euro have been less positive. Recently, Sterling reached an eight-year low against the single currency. That is a clear sign that there is plenty of guesswork involved in knowing what happens after Brexit.

Local Unity

To try and keep Brighton working, many local firms will work together. It could be through the local Chamber of Commerce, helping to put on events such as BrightonSEO or building links with other parts of the UK. A sense of cooperation will be fostered in the face of potentially challenging economic conditions.

After negotiations in Brussels end, there will be a transitional phase. This is when any difficulties are likely to arise. However, the resilience of Brighton-based businesses has helped to turn it around, as evidenced by the regeneration taking place here over the past two decades.

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