Tag: EU Referendum Press Releases

Below is the text of the press release issued by Britain Stronger In Europe on 21 June 2016.

Former bosses of Tesco, Sainsbury’s, M&S, Asda, Waitrose, Morrisons and B&Q warn that “prices will rise” if Britain leaves the EU.

Research by retail union USDAW finds that, if we were to leave, the hit to sterling and the imposition of tariffs would increase prices for families by £580 a year.

Stronger In analysis shows higher inflation as a result of leaving would cause a hike in rail fares.

Today [Tuesday], in an unprecedented intervention, the bosses of Britain’s biggest retailers, the USDAW trade union, and new research from Britain Stronger In Europe show that leaving the EU would cause prices for essential goods and services to rise, hitting working people and their families in the pocket.

In an open letter, the former bosses of Britain’s retail giants, as well as the USDAW trade union, warn that “prices will rise” if Britain leaves the EU, as the pound would weaken and supply chains would be disrupted. This would be “catastrophic for millions of ordinary families”, they say. They include former Tesco boss Sir Terry Leahy, former Marks and Spencer boss Marc Bolland, and former Sainsbury’s boss Sir Justin King.

It comes as USDAW, the union that represents 425,000 workers in the retail industry, unveils new research showing that workers would be at least £580 a year worse off if Britain leaves the EU, due to a hit to sterling and new tariffs imposed on imported goods like food, drink and clothing. The union’s General Secretary, John Hannett, concludes that: “Brexit will harm the UK economy, leading to fewer jobs, increased pressure on workers’ rights and greater insecurity for Usdaw members.”

Meanwhile, new Stronger In analysis demonstrates yet another crippling cost for working people if Britain leaves the EU – higher rail fares. If inflation was 2.7 percentage points higher, as the Treasury have said it might be if Britain leaves, the price of popular rail season tickets would rocket. A season ticket from Birmingham to London would increase by £270, from Ashford to London by £165, and from Liverpool to Manchester by £80.

Commenting, Alistair Darling, former Chancellor of the Exchequer, said:

“Every credible economic expert is clear – leaving the EU, our biggest market, would hit trade, boost inflation, and increase the price of imports. This would be devastating for working people who cannot afford a rise in the cost of living.

“The economic consequences of leaving Europe could well be worse than the damage done by the Great Recession of 2008. Workers, families and small businesspeople would all be hammered if we leave. The safe choice is to vote to remain in Europe”.

Andrew Adonis, former Secretary of State for Transport, said:

“As the Governor of the Bank of England has made clear, if Britain votes to leave the EU we risk a devaluation of the pound and unnecessary inflation. For millions of British commuters that could mean a ‘Brexit penalty’ of more than £100 a year on rail fares.

“In other words, rail users from across the UK will have to help foot the bill for leaving the EU. For British commuters concerned about prices there is only one sensible course of action this Thursday – say no to the leavers’ price hike and vote for Britain to remain economically secure within the EU.”

Richard Lloyd, Executive Director of Which? from 2011-2016:

“As someone who has spent years at Which? working to get a better deal for consumers, I am now convinced that leaving the EU will give ordinary British families a worse deal for years to come, including higher prices at the pump, higher prices at the till and higher prices on their holidays. My advice to consumers is clear – this could be an expensive mistake, don’t risk it.”

Text of the retailers’ letter:

“We are experienced retailers from Tesco, Sainsbury’s, Marks & Spencer, Asda, Waitrose, Morrisons and B&Q and with USDAW, who represent hundreds of thousands of trade union members, believe that if we leave the European Union prices will rise.

“There are two key reasons for this.

“Firstly, supply chains. We’ve spent the last few decades building very strong supply chains with the EU, which are fully integrated in order to deliver better quality, choice and value for the UK consumer. The single market and free trade are critically important to the strength of the consumer economy. Food is always one of the battle grounds for trade negotiations and the idea that we can reshape supply chains which have taken 45 years to build, in two to three years, is delusional.

“Secondly, the value of the pound. In the past two weeks alone, as worries over leaving Europe have increased, the pound has fallen dramatically. This will push up prices. A ‘Leave’ vote will very likely make this worse and lead to a further rise in prices – such as the cost of filling a petrol tank, and the price of a weekly shop. We strongly believe that a Brexit will see less money in people’s pockets and be catastrophic for millions of ordinary families. That is why we believe that Britain should remain in the EU on 23rd June.”

Marc Bolland, Sir Ian Cheshire, Justin King CBE, Sir Terry Leahy, Andy Clarke, Dalton Philips, Lord Price and John Hannett.

USDAW research:

The report from USDAW, The Impact of Brexit On Consumers, is here:http://ukstronger.in/v8iZ6v

Stronger In research:

Hundred-pound rail fare rises if we vote to leave.

New analysis has found that voting to leave could mean hundred-pound rises in commuter fares across the country.

The cap on annual rail fare rises is set by inflation, which analysis from the Treasury, the Bank of England, and leading banks has warned, would be driven up by the hit to sterling as a result of leaving.

As recent market turmoil has demonstrated sterling could be heavily impacted by a vote to leave, with some analysts forecasting falls of as much as 30%. That would mean higher prices for imported goods, driving up inflation. This would be passed in full on to commuters for each year inflation was higher as a result of Brexit, with warnings that the effect could last several years.

Example of the possible Brexit-penalty rail fare rises for just one year – based on the conservative estimate sterling would fall by up to 15% include:

Oxford – London: £152
Ashford – London: £165
Gloucester – Birmingham: £104
Liverpool – Manchester: £80
Edinburgh – Berwick: £99

The Governor of the Bank of England has highlighted how there could be “pressure on prices” if we vote to leave. “there can be short term implications for activity in the United Kingdom, and therefore, for pressures on prices… there could be movements in the exchange rate which would push up on inflation.” – Mark Carney, Governor Bank of England, 8 Mar 2016, Treasury Select Committee

HM Treasury have forecast inflation will be 2.3 – 2.7 ppts higher. “In the shock scenario, a vote to leave would result in a recession, a spike in inflation and a rise in unemployment… the analysis shows that the fall in the value of the pound would be around 12%…the exchange-rate-driven increase in the price of imports would lead to a material increase in prices, with the CPI inflation rate higher by 2.3 percentage points after a year…In the severe shock scenario…sterling would depreciate by 15% and CPI inflation would increase by 2.7 percentage points after a year.” – HM Government, HM Treasury analysis: the immediate economic impact of leaving the EU, May 2016, link

Regulated rail fare rises are determined by inflation – so the higher inflation would be completely passed on. Regulated rail fare rises, which cover commuter fares and protected fares like standard returns, are capped at the July RPI inflation figure. As the main differences between CPI and RPI is that RPI also includes housing costs, and it uses an arithmetic mean, which tends to be higher than the geometric mean used to calculate CPI, it is reasonable to assume that the impact on RPI inflation would be similar.

House of Commons Library, Rail fares and ticketing, 3 March 2016, link; ONS, Differences between the RPI and CPI measures of inflation, link

This would mean annual hundred pound rises in commuter season tickets for each year inflation was higher:

Season ticket between

2016 cost

2.3% increase

2.7% increase

Source

London fares

Ashford

London

£ 6,116

£ 140.67

£ 165.13

link

Maidstone

London (High Speed)

£ 5,207

£ 119.76

£ 140.59

link

Maidstone

London (Standard)

£ 4,221

£ 97.08

£ 113.97

link

Canterbury

London

£ 6,152

£ 141.50

£ 166.10

link

Chatham

London

£ 3,914

£ 90.02

£ 105.68

link

Brighton

London (Southern rail)

£ 4,452

£ 102.40

£ 120.20

link

Oxford

London

£ 5,620

£ 129.26

£ 151.74

link

London

Cambridge

£ 5,012

£ 115.28

£ 135.32

link

Cheltenham Spa

London

£ 9,800

£ 225.40

£ 264.60

link

Basingstroke

London

£ 4,196

£ 96.51

£ 113.29

link

Reading

London

£ 4,228

£ 97.24

£ 114.16

link

Birmingham

London

£ 10,012

£ 230.28

£ 270.32

link

Other fares

Liverpool

Manchester

£ 2,960

£ 68.08

£ 79.92

link

Gloucester

Birmingham

£ 3,860

£ 88.78

£ 104.22

link

Edinburgh

Falkirk

£ 2,032

£ 46.74

£ 54.86

link

Edinburgh

Berwick

£ 3,656

£ 84.09

£ 98.71

link

Glasgow

Kilmarnock

£ 1,600

£ 36.80

£ 43.20

link

Glasgow

Stirling

£ 2,044

£ 47.01

£ 55.19

link

Newcastle

Alnmouth

£ 2,064

£ 47.47

£ 55.73

link

Newcastle

Darlington

£ 2,324

£ 53.45

£ 62.75

link

Leeds

Selby

£ 1,480

£ 34.04

£ 39.96

link

Leeds

Skipton

£ 1,852

£ 42.60

£ 50.00

link

Manchester

Macclesfield

£ 1,988

£ 45.72

£ 53.68

link

Manchester

Nelson

£ 1,796

£ 41.31

£ 48.49

link

Liverpool

Warrington

£ 1,512

£ 34.78

£ 40.82

link

Liverpool

Neston

£ 1,208

£ 27.78

£ 32.62

link

Birmingham

Burton-on-Trent

£ 2,840

£ 65.32

£ 76.68

link

Birmingham

Kidderminster

£ 1,608

£ 36.98

£ 43.42

link

Bristol

Stroud

£ 3,176

£ 73.05

£ 85.75

link

Bristol

Weston-super-Mare

£ 1,844

£ 42.41

£ 49.79

link

Some analysts have forecast that the rise in inflation could last several years – meaning multiple years of higher fare rises. Citi have said higher inflation could last several years.
Reuters, 5 February 2016, link

This effect on inflation is likely to be an underestimate

Treasury forecasts for the fall in the value of the conservative compared to other forecasts. The Treasury forecast is based on a 12%-15% fall in the pound. This is lower than the estimates of a number of other banks:

Citi has predicted a sterling fall of up to 20%. Citi has predicted that if the UK votes to leave the EU the pound would depreciate significantly, “with sterling’s trade-weighted exchange rate probably retesting the lows after the 2007-09 crisis … 15-20 percent below current levels”, pushing inflation up to 3-4% for several years and possibly causing the Bank of England to hike interest rates.
Reuters, 5 February 2016, link; Financial Times, 8 February 2016, link

HSBC predict that sterling could fall 20% against the dollar. HSBC has said the UK “will need to get beyond Brexit fears” before sterling recovers from the weakness seen in early 2016. If the UK votes to leave the EU, HSBC predicts sterling could fall by 20% against the dollar.
Financial Times, 22 January 2016, link

Goldman Sachs predicts a sterling fall of up to 20%. Goldman Sachs has predicted that sterling could fall by 15-20% if the UK votes to leave the EU, as capital inflows required to finance the capital account deficit dry up.
Financial Times, 4 February 2016, link

And recent forecasts of the hit to sterling say it could be as high as 30%:

Ian Harnett, Chief Investment Strategist, Absolute Strategy Research: “The downside risk is probably 30% to sterling and another 20% to equities”
Guardian, 11 June 2016, link

Iain Clark, Efficient Frontier Consulting & Saeed Amen, Thalesians: “Much of the debate around a potential British exit (Brexit) from the EU has centered on the potential macroeconomic impact. In this paper, we instead focus on understanding market expectations for price action around the Brexit referendum date. Extracting implied distributions from the GBPUSD option volatility surface, we estimate that the market expects a vote to leave could result in a move in GBPUSD from 1.4390 (spot reference on 10 June 2016) down to a range in 1.10 to 1.30, i.e. a 10-25% decline”
Implied Distributions from GBPUSD Risk-Reversals and Implication for Brexit Scenarios, 13 June 2016, link

Alvin T. Tan, Societe Generale: “The market for sterling and sterling protection is being led by the nose by the opinion polls.’ If the UK votes to leave, he forecast the pound will drop to $1.30 within two weeks and $1.20 in the longer term.”
Bloomberg, 15 June 2016, link

Yann Quelenn, Swissquote Bank: “In the event that the polls provide strong indication that the UK is heading for the Brexit door, the pound sterling will resume its free fall and move towards the $1.30.”
15 June 2016, link

It would also be harder to afford the current rail fares policy after the £40 billion cost of leaving. The independent IFS have warned of a £40 billion hole in the public finances if we leave. That would make it harder to afford the pledge made to cap regulated fare rises at RPI. If this was abandoned that would mean even higher fare rises. The IFS said: “The estimates of NIESR for a GDP hit of between 2.1% and 3.5% probably provide a good central range for the likely impact on GDP in 2019. Including the direct benefits of reduced budget contributions, these would lead to the public finances being between about £20 billion and £40 billion less healthy than in a scenario in which we did not leave the EU.”

IFS, Brexit and the UK’s Public Finances, 25 May 2016, p.69

Leave campaigners think the higher prices a lower pound would bring is an acceptable price to pay

Nigel Farage. “Even if sterling were to fall a few percentage points after Brexit, so what?”
Nigel Farage, Marr, 12 June 2016, link

Andrea Leadsom. “The pound goes up and down. It’s a floating currency. So it floats. If it goes down a bit, that is good for our exports. If it goes up a bit, that is good for us going on holiday to Europe. It floats. It is a floating currency. So to say because it goes down or up, that is a disaster, is simply not true. There are winners and losers, and a bit of volatility in advance is likely, but afterwards, people close out their positions and deal with the new reality”
Andrea Leadsom, Murnaghan, 5 June 2016

Jacob Rees Mogg: “Inevitably there will be a level of uncertainty if we leave…This uncertainty could include a fall in the value of the pound, but that is not necessarily a bad thing.”
Mail on Sunday, 29 May 2016, link

Vote Leave Deputy Chairman John Mills runs a campaign to reduce the value of the pound. John Mills set up ‘The £ campaign’ in 2014. The campaign argues that “The UK pound is much too high. We urgently need a more competitive exchange rate”. John Mills is the Chairman and the correspondence address for the campaign is the office of his business JML
The £ Campaign website, link

A Vote Leave press release makes the argument sterling depreciation would be good for the economy.
“The MPC accepts that currency fluctuations could be benefitting the economy. The minutes state that: ‘Sterling has depreciated further over the past month… these movements should support economic activity’”
Vote Leave press release, 14 April 2016, link

Below is the text of the press release issued by Britain Stronger In Europe on 21 June 2016.

Sporting hero David Beckham on why he’s voting Remain:

“I’m passionate about my country and whatever the result of Thursday’s referendum, we will always be Great. Each side has the right to their opinion and that should always be respected whatever the outcome of the European Referendum.

I played my best years at my boyhood club, Manchester United. I grew up with a core group of young British players that included Ryan Giggs, Paul Scholes, Nicky Butt and the Neville Brothers. Added to that was an experienced group of older British players such as Gary Pallister, Steve Bruce and Paul Ince.

Now that team might have gone on to win trophies but we were a better and more successful team because of a Danish goalkeeper, Peter Schmeichel, the leadership of an Irishman Roy Keane and the skill of a Frenchman in Eric Cantona.

I was also privileged to play and live in Madrid, Milan and Paris with teammates from all around Europe and the world. Those great European cities and their passionate fans welcomed me and my family and gave us the opportunity to enjoy their unique and inspiring cultures and people.

We live in a vibrant and connected world where together as a people we are strong. For our children and their children we should be facing the problems of the world together and not alone.

For these reasons I am voting to Remain.”

Below is the text of the press release issued by Britain Stronger In Europe on 21 June 2016.

I am proud to represent a number of different & very inspiring organisations, but on this issue, I speak from the heart and only for myself.

I also so respect the right for people to have varying views: that’s a key part of democracy. But the EU Referendum is an issue that really matters & this is why I believe it is important to be open.

This referendum has been hard to watch at times but, at heart, this is what I feel: I have travelled all over the world and have noticed, so often, how many of the most vulnerable people look to the UK for character and leadership, as if we are like beacons of good manners and fortitude. Our country’s values and contribution are respected across Europe and beyond; the UK is a trusted friend to so many nations. Those things can get lost in the maze of headlines.

At such a time for the UK to retreat, run and cut ourselves loose from Europe, when there are so many challenges on our doorstep, to me just doesn’t feel either courageous or kind. Europe has many flaws, but I also believe the way to help resolve many of those tough issues is from within. History has taught us that together we achieve more. I guess I believe that to help make the future of the world a better place then that future has to be about partnership.

As a taxi driver said to me in Paris recently, we really need you, the UK. Don’t desert us when times are tough, stand with us like you always have.

That rang true.

I have never been a good quitter and I am so proud of the UK and our values: tolerance, kindness, respect, courage and resilience. This is why I want us to stay together and Remain in Europe.

Bear Grylls.

Below is the text of the press release issued by Britain Stronger In Europe on 21 June 2016.

Nearly 50 sports stars and industry figures, including Lawrence Dallaglio, Paula Radcliffe, Martin Glenn, Colin Graves and Neil Lennon, have today signed a letter urging Britain to stay in the EU by arguing that “we are stronger working together”.

The list of signatories also features Kyran Bracken, Bobby George, Tanni Grey-Thompson, Greg Dyke, Peter Coates, Steve Cram, Neville Southall, Ben Ainslie and Daniel Levy.

The letter comes on the same day that David Beckham and Rio Ferdinand have both thrown their support behind the campaign to keep Britain in the EU.

In the letter, the signatories say:

“In sport, the one thing that matters above all else is your team. Whether on the football pitch or running track, in the pool or in the gym, you can achieve so much more by working together. And the same is true for Britain in Europe: we are stronger working together with other countries with the ability to travel, work and play sport right across the continent.

“To remain a world leader in sport, we need to remain in the European Union. And that’s why we’ll be voting to remain on 23rd June.”

Writing for the London Evening Standard, Rio Ferdinand said:

“Sir Alex Ferguson always taught us that no individual is bigger than the team — that just because we played for Manchester United didn’t mean we could swan around doing our own thing. We had to work even harder, and be even more of a team, to get where we wanted to be.

“I think Europe is a bit like that. Britain is an amazing country but we’ll achieve much more if we’re a team player – working with others to get things done. I believe we need to work with our friends and neighbours in Europe if we want to make changes our children can be proud of.

“The sort of things young people care about: tackling climate change, helping refugees, fighting disease in Africa — they can only get fixed if we all work together.”

Full text of the letter:

With Euro 2016 well under way, and the Rio Olympics and Paralympics approaching, Britain is gearing up for an exciting summer of sport.

The pride of Great Britain at London 2012 showed how we can punch above our weight with a haul of medals beyond many people’s wildest dreams. But we need to continue to invest in talent at the grassroots and, for the thousands of young people starting out in their sport, every last penny is vital. At the moment, EU funding promotes UK sport at the local level and funding for school sport is essential too, and this is at risk if we decide to leave.

And, for the fans following their teams across Europe, being able to hop on a low-cost flight without a visa makes it easy to do – both things for which we have the EU to thank.

In sport, the one thing that matters above all else is your team. Whether on the football pitch or running track, in the pool or in the gym, you can achieve so much more by working together. And the same is true for Britain in Europe: we are stronger working together with other countries with the ability to travel, work and play sport right across the continent.

To remain a world leader in sport, we need to remain in the European Union. And that’s why we’ll be voting to remain on 23rd June.

Full list of signatories:

Allison Curbishley – Former British Athlete
Ali Jawad – IPC powerlifting World and European Champion
Anna Turney – Paralympic Skiier
Ben Ainslie – 4 time Olympic gold medallist
Bobby George – Former Professional Darts player
Carol Galashan – Commonwealth Games athlete and former Olympic gymnast
Catherine Bishop OBE – 2004 Olympic Silver medallist
Colin Graves – Chairman of the ECB
Daniel Levy – Executive Chairman of Tottenham Hotspur
Dave Moorcroft – Former 5,000m world record holder
David Dein – Former Vice-Chairman of Arsenal and the FA
David Sullivan – Co-Chairman of West Ham United
Delia Smith – Joint Majority Shareholder of Norwich City FC (signing in a personal capacity)
Emma Pallant – 2 time World Duathlon Champion
Frank Warren – Boxing Promoter and Chairman of Box Nation
Gary Mabbutt – Former professional footballer
Georgia Francis – Rowing U23 World Champion Silver medallist
Gérard Houllier – Former Liverpool and Aston Villa manager
Greg Dyke – Chairman of the FA
Hannah Beharry – Nine times British boxing Champion, two times European medallist
Julien Allwood – Triple Jumper
Jarvis Astaire OBE – Former boxing promoter
Johnny Nelson – Former WBO Cruiserweight Champion
Kate Haywood – British Record Holder for the 100m Breaststroke
Kyran Bracken – Rugby World Cup winner
Lawrence Dallaglio – Former England Rugby World Cup winner
Lee Hoos – CEO of Queens Park Rangers
Lee Shinkin – 7 times National Judo Champion
Lily van den Broecke – Paralympic Gold medallist at London 2012
Mark Abberley – CEO British Taekwondo
Martin Glenn – CEO of the FA
Meg George – Former USA Rowing Team Member
Mike Garlick – Chairman of Burnley FC
Neil Lennon – Hibernian manager and former Norther Ireland international
Neville Southall – Former Everton and Wales goalkeeper
Paula Radcliffe – British long distance runner
Peter Coates – Chairman of Stoke City FC
Peter Reid – Former Sunderland manager and England midfielder
Peter Storrie – Former CEO of Portsmouth
Rachael HeyHoe Flint OBE – Former England Women’s Cricket Captain
Robert Elstone – CEO of Everton
Sam Brearey – Sailing World Champion
Stuart Hayes – 2012 Olympic Triathlete
Steve Cram – World, Olympic, European and Commonwealth medallist
Sophie Newnes – 3 time World Martial Arts Champion, National Jujitsu Champion
Tanni Grey-Thompson – 11 times Paralympic Gold medallist

Below is the text of the press release issued by Britain Stronger In Europe on 21 June 2016.

Tonight Ruth Davidson, Sadiq Khan and Frances O’Grady held the Leave Campaign to account for their lies during this campaign – and for having no plan for Britain’s future.

And the three Remain supporters set out the strong, patriotic case for staying in Europe: for jobs, for workers’ rights, for a stronger future for UK families.

Below is the text of the press release issued by Britain Stronger In Europe on 22 June 2016.

Today [Wednesday], in a joint statement, TUC General-Secretary Frances O’Grady and EEF chief executive Terry Scuoler say that manufacturing is better off in Europe, and that “leaving would be a terrible gamble, amounting to playing poker with people’s jobs, businesses and the country’s economic stability.”

It comes as a new survey by M&A Adviser shows 65% of people working in the M&A field believe leaving the EU would make Britain worse off.

Commenting, Stephen Kinnock, Labour MP for Aberavon, said:

“Unions and manufacturers alike know that Britain’s economy is stronger in Europe, supporting jobs, lower prices and financial security for families across the country.

“Nine out of ten economists say that outside the EU’s single market trade and investment would be hit and jobs would be lost.

“When workers, experts and employers unite behind a single argument it cannot be dismissed by leave campaigners, who have no economic plan for Britain.

“Vote Remain for more jobs, lower prices, stronger public services and a decent, tolerant Great Britain. If we vote to leave, there is no going back. Don’t risk it.”

City experts are predicting “considerable and prolonged uncertainty” and there are questions on the “future role of the City of London as the leading financial centre”:

“The preponderance of views points to a post-Brexit world of considerable and prolonged uncertainty which will persist until the UK comes to an agreement with the EU on all aspects of their relationship. Questions have been raised over the future role of the City of London as the leading financial centre. Some say that the pool of talent that exists there will slowly begin to haemorrhage and other, principally European, financial centres will benefit from their knowledge and expertise and from increasing volumes of transactions in the future.”

The M&A Advisor, 21 June 2016

The uncertainty is already leading to a slow-down in transactions already:

“In the run-up to the referendum, we are aware of a number of deals that have been put on hold until the outcome is known. Merrill can look at deals that have been initiated in our systems and see that a significant amount of them have been stalled. A number of clients approach us, full of optimism, at the start of a deal only to inform us that, “Our buyer has pulled out or stalled pending the results of the referendum.” Anecdotally, our clients are telling us that deals are being suspended simply because if you are buying a UK business that has significant exports into the EU, they are going to be very cautious about executing that deal due to the uncertainty surrounding Brexit.”

The M&A Advisor, 21 June 2016

Following a vote to leave the EU, experts are concerned there would be less investment in the UK:

“Many people believe there will be less investment in the UK if Britain decides to leave. In a post-Brexit world it is unclear what trade agreements will be in place and whether any restrictions in the movement of goods would change these investment decisions.”

The M&A Advisor, 21 June 2016

A vote to leave will also lead to uncertainty increasing risk premiums on debt, making it more expensive for firms to invest and execute mergers and acquisitions:

“But,” he continues, “our research did point to the pricing of ‘uncertainty’ and we estimated that there would be a 50 basis point (BPS) risk premium on debt – a result that would have a major impact on a deal, reducing the price a buyer could pay. Such uncertainty reduces confidence. We believe a hiatus in dealmaking is likely if Brexit wins the vote, and one that could persist for a number of years until we all understand what the full terms of Brexit really mean.”
PwC’s Stuart McKee, The M&A Advisor, 21 June 2016

Survey results

Over 65% of survey respondents felt that the UK would be less likely to prosper if it left the EU. A similar proportion said that Britain would be less likely to attract overseas investment.

69% of respondents felt that uncertainty over the UK’s EU membership is likely to affect the current M&A and markets.

67% said that investment decisions are being negatively affected

64% of survey respondents said that UK businesses would be less attractive to overseas acquirers in the short term if Britain votes to leave the EU.

65% of our survey respondents felt that a vote for Brexit would have a negative long-term effect on M&A and high-yield markets.

The M&A Advisor, 21 June 2016