Majority of EU businesses see Brexit as a threat, survey finds

European firms with UK operations are calling on the two sides to come to an agreement on the single market

A quarter of respondents said they were reviewing their investment plans in the UK because of Brexit (Getty)

A majority of European business chiefs see the UK’s vote to leave the EU,as a threat to their business, with some reviewing their plans to invest in the UK, a new survey has found.

A poll of 700 of Europe’s business leaders conducted by the European Business Awards for accountancy firm RSM, the 6th largest audit, tax and consulting network, found that 54 per cent believe Brexit poses a threat, compared to 39 per cent who see it as an opportunity.

Meanwhile, a quarter of respondents said they were reviewing their investment plans in the UK because of Brexit.

Anand Selvarajan, regional leader for Europe at RSM International, said Britain’s decision to leave the EU was a "challenge" for companies across Europe as they remain uncertain about how the vote will affect them.

He said: "It is vital, in this period of uncertainty, that businesses focus and prepare for the future based on the emerging facts and are not paralysed by the countless doomsday theories out there. Trade will continue and businesses need to be agile in responding to the evolving political and economic landscape."

As Theresa May prepares to publish her Brexit plans, European firms with UK operations are calling on the two sides to come to an agreement on the single market.

Picture: (Datawrapper)

Continued access to the single market is the number one priority for European firms with operations in the UK, followed by tax incentives and free movement of labour, according to the survey.

Adrian Tripp, chief executive at European Business Awards, said: "Surveys conducted both before and after the referendum show us the continuing belief of many European businesses that Brexit has made the UK a less attractive place to do business. To stop this becoming a self-fulfilling prophecy the UK Government needs to get an agreement in place with the EU as soon as possible."

In the UK, businesses, particularly within the financial services industry, have long pushed the Government to go for a transitional arrangement, as part of Brexit negotiations.

Earlier in December, a cross-party group of peers said Britain’s financial sector must be offered a "Brexit bridge" to prevent companies moving to rival financial centres such as New York, Dublin, Luxembourg, Frankfurt or Paris.

Additional reporting by PA