Businesses underestimated the negative effects of Brexit

Many British and German companies underestimated the negative consequences of Brexit according to a survey conducted by KPMG Germany with the British Chamber of Commerce in Germany (BCCG). Two thirds of respondents admitted that the real impact of Brexit was more negative than thought at the start of the year.

The report The grave consequences of Brexit surveyed 93 BCCG member organisations and other companies ‘with a German-British business relationship’ between 23 March and 12 April 2021.

Among the findings are that 24% of companies responding to the survey considered that the post-Brexit tax regime in the UK was ‘somewhat likely’ to bring opportunities for business in the hope of more favourable tax rates or a ‘more advantageous tax system’ in the UK although 49% considered this either somewhat or extremely unlikely.

The trade agreement between the EU and the...