Start preparing for possible EU exit following Cameron's victory, businesses warned

Law firm Hogan Lovells said a so-called Brexit would have huge implications for business in a wide range of sectors

A 'Brexit' could have huge implications for business in a wide range of sectors (Getty Images)

Businesses should start preparing now for the consequences of a possible UK exit from the EU, lawyers have warned, as the City began to digest the implications of the Conservatives’ victory.

Law firm Hogan Lovells said a so-called Brexit would have huge implications for business in a wide range of sectors, both in the UK and across the EU, ahead of Prime Minister David Cameron’s promised referendum.

That is particularly true for heavily regulated sectors such as financial services, pharmaceuticals, media and telecoms.

But the law firm said companies generally could have to grapple with issues around employment law, cross-border disputes and potentially satisfying two sets of competition regulations, should the UK pull out.

Tax, privacy and even debt markets would also be heavily affected by a Brexit.

“New legal structures may be needed to continue to function, or trade, as effectively across an EU border if the UK votes to leave, for example, to replace the single market passport regime,” the law firm said.