Thousands of London companies will collapse in the wake of a “no-deal” Brexit, research claims today. It found that firms in the capital and the South-East are at greater risk than those in other regions, largely because of their closer links with Europe. The analysis suggests that 7,900 London companies will fail — with the loss of about 41,800 jobs — in the 12 months after Brexit, even if a deal is agreed with the European Union. However, if Theresa May fails to reach terms with EU leaders and Britain crashes out of the bloc in March, the total rises to 12,540, with 66,245 jobs lost. The findings emerged when business intelligence firm Populous.World carried out a forensic financial health check on small and medium-sized enterprises (SMEs) with between nine and 249 staff across the UK. Steve Nico Williams, chief executive of Populous.World, said: “London and the South-East will bear the brunt of the harsh effects of a no-deal Brexit. Even with a deal in place the upheaval, friction and uncertainty of Brexit next year will send thousands of London’s smaller companies into insolvency.” Populous.World, which collects data from public sources such as Companies House, found that about three per cent of London SMEs were already struggling. About a quarter of those relied heavily on European business and were likely to be tipped over the edge by Brexit. Combined with a predicted 9,697 business failures in the South-East if there is no deal, the total for the region is 22,237, almost matching the 23,886 forecast for the rest of England. The research also revealed that the number of businesses being created in London had slowed sharply since the 2016 Brexit referendum, with a 14 per cent drop the year after the poll. It predicts that a no-deal could see SME closures outnumber start-ups for the first time since 2009. The findings follow a survey by the Federation of Small Businesses, which found that only eight per cent of those in London have started planning for a no-deal Brexit.
Thousands of companies in London and the South East are likely to collapse in the event of a no-deal Brexit, with more than 66,000 job losses predicted in London, according to business intelligence firm Populous.World. Even if a deal is struck, 7,900 London companies are expected to fail, with 41,800 jobs lost. Small- and medium-sized firms are expected to be hit hardest, with closures potentially outnumbering start-ups for the first time since 2009. The number of businesses created in London in the year following the 2016 EU referendum dropped 14%.