In or Out. What do British Businesses Think?

Image Credit: The Guardian

David Cameron is back from his "battle in Brussels" and his reward for his efforts were some considerable reforms on the UK's EU membership agreement including:

• Child benefit - Child benefit payments to migrant workers to be recalculated.
• Migrant welfare payments - The UK can decide to limit in-work benefits for EU migrants during their first four years in the UK.
• Eurozone - Britain can keep the pound while being in Europe, and its business trade with the bloc, without fear of discrimination. Any British money spent on bailing out eurozone nations will be reimbursed.
• Protection for the City of London - Safeguards for Britain's large financial services industry to prevent eurozone regulations being imposed on it.
• Sovereignty - The UK will not be part of an "ever closer union" with other EU member states.
• 'Red card' for national parliaments - It will be easier for governments to band together to block unwanted legislation.
• Competitiveness - The settlement calls on all EU institutions and member states to "make all efforts to fully implement and strengthen the internal market" and to cut red tape.
• Some limits on free movement - Denying automatic free movement rights to nationals of a country outside the EU who marry an EU national. There are also new powers to exclude people believed to be a security risk.

But what do UK businesses think about these reforms?

According to the Financial Time bosses more than a third of the companies in the FTSE 100 have declared that Britain is better in the EU and that Brexit would lead to potential job losses and affect investment. Companies including Vodafone, easyJet, BT and Barclays believe an exit from the EU would be negative for the British economy.

Moody's, a key investors service, said: “A decision to leave the EU would be credit negative for the U.K. The economic costs of a decision to leave the EU would outweigh the economic benefits.”

On Monday London Mayor Boris Johnson, a high profile figure, said he'll campaign to quit the EU. Since then the pound dropped to its lowest level in almost 7 years against the dollar, the biggest decline since 2009. 

Are you a business owner? Do you think the UK is better in or out of the EU? Let us know your thoughts. 

360ict provides managed IT services and support for SMEs in central London and the south-east, including Croydon and Bromley. For more advice on gaining competitive advantage as a mid-sized company, give us a call on 0208 663 4000. 

Queen Elizabeth II: One of the UK’s Most Powerful Brands (and Longest Reigning Monarch)

Image from the Royal Household

Queen Elizabeth II may want to keep things low key and “business as usual”, but millions throughout the country are celebrating today as she becomes Britain’s longest reigning monarch. However, Professor Qing Wang from Warwick Business School has found that the Queen is more than a monarch, she is an essential figure for promoting the UK’s products and businesses. 

Professor Wang said: “The Queen and the royal family are the most significant symbols of British heritage and tradition. They inject a sense of continuity and national identity in the globalised and ever-changing world we live in today.

“The Queen and all the history that comes with her, gives British luxury brands an edge and distinctive advantage.”

Global demand for "Made in Britain" labels means UK luxury good firms are set to get a sales boost, as stated in a report from Frontier Economics. By 2019 the value of sales is said to reach around £51.1bn and, according to Wang, Chinese consumers are showing the biggest growing appetite for British luxury goods. 

Professor Wang conducted a survey of Chinese consumers and asked them what they associated with Britain and the “Britishness” they like so much. Her results show that the Queen and the Royal Family were top of the list. 

“Luxury goods are defined as those satisfying hedonic rather than functional needs and our research has found this is an area that Britain enjoys a distinct advantage in,” said Professor Wang.

“The Queen is a significant reason for this, as a very important factor that makes Britain stand out is that it incorporates tradition and innovation seamlessly.

“Put differently, Britain’s advantage lies in the so-called soft power, which is defined as the ability to get what you want through attraction rather than through coercion, and the UK’s royal heritage is a key part of that.

“The extent of its impact is hard to measure and even harder to replicate. As China promotes its own soft power, it has increasingly turned to Britain for inspiration.”

Professor Wang believes that products and services linked to the Queen and the royal family has helped protect them from any slump in the market.

“The continued profit and sale decline of luxury brands are a strong indication that luxury brands are losing their lustre due to over exposure in the global marketplace and outsourcing of production to other countries.

“There is a trickle-down effect of shoppers looking to emulate the luxury lifestyle, but the conspicuous consumption of middle-class consumers is threatening the very essence of luxury being exclusive.

“But the link to the most important British heritage – royalty - reaffirms to consumers the brand’s authenticity and reminds the public of the golden bygone age. Unique and customised product offerings combined with exquisite craftsmanship and the royal association continue to drive sales in emerging markets.”

Specialist brand and business valuation agency, Brand Finance, has put a figure on the monarchy’s value to the UK. The firm found that that the British Monarchy is worth about £57 bn and will make a net contribution to the economy this year of £1.16bn.

360ict provides managed IT services and emergency IT support for SMEs in central London and the south-east, including Bromley and Croydon. For more advice on gaining competitive advantage as a mid-sized company, give us a call on 0208 663 4000 or contact us via our website.