What UK industries will be hit the most by Brexit?
It may seem like the United Kingdom dodged a bullet when EU leaders accepted to give the country yet another deadline for creating a plan for exiting the union, but in the grand scheme of things, it gave even less time to the UK to somehow retain already existing companies on its shores.
Before the deadline for Brexit was extended, the UK was shredding companies left right and center. Banks were abandoning the island, while other companies were trying to move their headquarters anywhere else in the EU.
The UK’s financial regulator, FCA has been hard at work getting guarantees from various ES states that investment opportunities and financial relations would not be abandoned and etc.
Overall, it seems like the UK is going to take a bit hit on its economy pos-Brexit but which ones will bear the brunt of it?
It is obvious that the most important industry that the UK cherishes is its financial sector. It’s basically considered to be the financial center of Europe next to Switzerland, but the sheer number of trades and deals that are made on the island can only be matched by the United States exchanges.
The financial industry has already been taking massive hits in terms of fund withdrawal from the country. Large banks have already applied for taking away billions out of the country and diversify in their subsidiaries all across the EU.
Smaller companies though are moving house completely, going to cities like Frankfurt and Amsterdam to avoid the massive fluctuation of the economy after Brexit.
Not only is this going to tank the value of the industry, but also leave a lot of Brits in search of jobs and not enough companies to accommodate them.
The gaming industry
The gaming industry is one of the most cherished sectors by the British. It’s basically a place where people go to simply offload all of the post-work stress which is always an issue in the UK.
The issue that the gaming industry will face will most likely revolve around taxes. According to https://play.casino/, the loss of funds from other essential industries such as finances and agriculture are going to tank the UK budget by quite a lot. By taxing the non-essentials on a much larger scale, the government is trying to mitigate that loss as much as possible.
This is likely to create a bottleneck for new companies as they fail to profit from their business models due to sanctions, high taxes, employee wages and a decreased customer base from the European Union. It is expected that only the largest gaming companies will survive after Brexit in the UK.
Most are already considering to relocate in places like Malta and the Isle of Man.
The plastic industry
It may be quite surprising but the UK is one of the world’s largest plastic manufacturers, from which it draws more than GBP 25 billion of revenue on a yearly basis.
It needs to be noted that around 70% of the export for these plastic goods is made to the European Union, therefore the UK will be losing approximately GBP 15 billion from Brexit.
Plus the hit to employment as the plastic industry is considered to be one of the best workplaces for the lower class of the country.
That’s not all of it but most of it
Naturally, there will be other industries that will take a major hit, but these three are considered to be the biggest victims.
The fact that financial institutions are forced to shut down or move, that new gaming companies will find it impossible to begin operations and that the plastic industry will be losing more than 70% of its revenue is enough to give the UK much more incentive to come up with a much more beneficial deal for both parties.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes.