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EU referendum will mean hiring freezes and redundancies for employees, IoD says

'We can’t sugar-coat this, many of out members are feeling anxious.'

Zlata Rodionova
Monday 27 June 2016 09:17 BST
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One in five respondents is considering moving some of their operations outside of the UK
One in five respondents is considering moving some of their operations outside of the UK

British employers have warned that the UK’s decision to leave the EU could prompt hiring freezes and job losses.

A quarter of company bosses said they plan to freeze recruitment and 5 per cent said they expected to fire staff, according to a survey of more than 1,000 business leaders by the Institute of Directors (IoD).

Nearly two-thirds of those firms polled said the outcome of the referendum would be negative for business. One in five respondents is considering moving some of their operations outside of the UK.

Simon Walker, director general of the Institute of Directors, said businesses will be busy working out how they are going to adapt and succeed after the referendum result.

“We can’t sugar-coat this, many of out members are feeling anxious,” Walker said.

“A majority of business leaders think the vote for Brexit is bad for them, and as a result plans for investments and hiring are being put on hold or scaled back,” he added.

The survey by the IoD, which did not participate in the referendum campaign, comes after HSBC reportedly said it is planning to move up to 1,000 employees from the UK to Paris due to Britain’s narrow vote to leave the EU.

The leading global bank, which has assets worth $2.6 trillion (£1.9 trillion), has said it will relocate the jobs if the UK leaves the single market, a possible outcome of post-Brexit negotiations, according to the BBC.

The value of the pound slipped almost 2 per cent on Monday morning as the EU referendum result reverberated around global markets. This was still slightly higher than on Friday when the Brexit vote has send the value of the pound to its lowest level against the dollar in more than 31 years.

George Osborne has sought to calm volatile financial market in a speech before the markets open on Monday morning.

“Britain is ready to confront what the future holds for us from a position of strength.

“Growth has been robust and employment is at a record high. Our economy is now about as strong as it could be to confront the challenge the country now faces,” he said.

David Cameron said he would continue in Number 10 until the party elects a successor, which is likely to be before the Tory conference in October.

The decision to trigger Article 50, which will officially start Britain’s separation from the EU, will be taken by his successor, although European leaders urged the UK to start the process earlier.

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