With just over a week to go before a post-extension final deal/no-deal Brexit, we're all wondering how much Brexit has really cost the UK.
In May 2018, Mark Carney, the Governor of the Bank of England stated that "the cost of Brexit to the UK economy was already £40bn and counting." Hashtag FeelingSickEmoji!
When he was giving evidence to the Treasury Select Committee, he said that "the result of the 2016 EU referendum had already knocked 2% off the economy, leaving each UK household £900 worse off, on average, than they would have been had voters opted to remain".
And a report published in September 2018 by the Centre for European Reform backs up Carney's comments. They found that the UK economy was already 2.5% smaller than it would have been had Remain won the referendum, costing the the UK £26bn per year, which is £500m per week.
That was “an awful lot of money” for families struggling with high inflation and stagnant wage growth", Mark Carney at the Treasury Select Committee.
On Brexit planning since 2016, Chancellor Philip Hammond has confirmed the UK has spent £4.2bn on Brexit preparations. Taking into account all of these enormous figures, the losses significantly arc any promise of a “Brexit dividend” of £350m a week, which supposedly could be spent on the NHS. Hashtag ThrowingUpEmoji!
From our point of view at Credit Control UK, we're thinking, what does this mean to the UK business community, especially the small and medium business community? Well, it means you must be acutely aware of your cashflow and debtors days and get your cash in as quickly as possible for your unpaid invoices. Don't allow credit terms with debtors or for them to run up long payment settlement periods. Also manage your creditors well, ensure that you pay them on-time but not early and if you are experiencing a cashflow problem, communicate with your debtors and creditors immediately to resolve the situation and come to a speedy agreement.
Ensure that your outstanding debtor invoices are collected promptly in line with your payment terms to ensure financial stability for your company. If your money is not in your business, your money is going to be in your customer's business because they are looking to protect themselves during this volatile and unstable economic climate through managing their creditors very tightly.
For help with getting your outstanding invoice debts collected, speak to us on 0208 720 7309 or email firstname.lastname@example.org