Barclays, Google remain committed to UK post-Brexit but growth reaches 4-year low
Barclays and Google have reaffirmed their commitment to Britain after the country voted to leave the European Union, but a survey revealed that growth since the referendum has reached a four-year low.
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Matt Brittin, president of Google in Europe, said that Britain was attractive due to its access to the internet and the ecommerce industry as Google is focused on “big trends”.
“The UK is starting with a lead in this area, so a world leader in ecommerce. So for us, there's great talent here in the UK,” he told the BBC Radio 4’s Today programme.
“We announced an intention to create 3,000 more jobs here in a big new investment in our facilities here, but that's only because the UK is so good at the internet that we can support companies here in that growth agenda.”
This was echoed by Barclays chairman John MacFarlane who said that the City had a “competitive advantage” over its rivals and that the bank was increasingly focused on UK and US markets.
Financial institutions have been concerned about passporting rights post-Brexit, which allows them to provide services to EU states plus Norway, Iceland and Liechtenstein by adhering to one set of regulations.
However, the Chartered Management Institute found that 39% of over 1,118 British business surveyed said they had experienced growth since June’s EU referendum, which was the lowest since 2012.
Some 65% of business said they were pessimistic over the economic prospects of the country in the next 12 to 18 months.
About 45% said Brexit would have a negative impact on growth in the next three to five years and 35% said that they that they lacked confidence in the current leadership on the country to capitalize on opportunities brought by Brexit.
A quarter surveyed said they were pessimistic about prospects for their own business, which was, in line with levels seen over the past year, and 57% said they were positive about the performance of their business in the next 12 months.
CMI’s chief executive Ann Francke, said: “In this climate of heightened political uncertainty and economic turbulence, the time is now to position Britain as a global leader in responsible capitalism, targeting essential issues like workplace ethics, inclusivity and executive pay to restore trust and transparency and improve productivity.”
Shares in Barclays were down 0.42% to 224p at 1444 GMT and shares in Alphabet were down 0.18% to 808.50 cents at 1443 GMT