German companies plan to invest more in people and production in the UK, but more efforts are needed to improve trade after Brexit, says leading business and tax consultancy Blake Rottenberg.
Niels Schmidt-Soltau, partner at the firm, said: “A recent survey by the German-British Chamber of Commerce showed that most UK-based German companies view the performance of their UK operations favorably or very favorably with almost half of the survey respondents and we expect growth over the next twelve months.”
He added: “More than 40% of survey participants plan to increase their investments in the United Kingdom, a clear indication of improved business sentiment and future prospects for the UK market among German companies. Participants indicated that the main reason behind German companies increasing their presence in the United Kingdom is the size The local market is attractive, but political uncertainty, low demand, and trade barriers are among the challenges faced by companies.
“While we are pleased to see renewed optimism among German businesses in the UK, it is clear that there is more that the UK government needs to do to create an environment in which international companies are confident to invest,” Niels said.
He added: “More needs to be done to improve post-Brexit trading arrangements to remove some of the barriers that now exist on the movement of people and goods. The work needs clarity and simplicity, and avoiding further regulatory friction between the UK and its closest trading partners will be key to enabling the UK to achieve its growth agenda.
Niels said: “Any incoming government will need to be more aware that the UK, as a business destination for German and other international companies, is competing with other European markets. There must be a clear realization that any further regulatory and legal deviation from EU standards will reduce the attractiveness of The UK as a destination for EU companies.
He added: “While German companies in the UK want to expand their operations, there has been a noticeable decline in German small and medium-sized companies setting up operations in the UK in recent years due to the cost, both financially and in management time, coupled with regulatory uncertainty. The noted politician is considered extremely significant.
“While the UK market remains attractive for many offshore businesses, more needs to be done to remove barriers to entry and demonstrate that the UK is open for business with a renewed focus on developing relationships with its immediate neighbours,” Niels said. .