The number of UK businesses that would like to see the UK join the Euro has fallen to its lowest ever level, according to new research by business and financial advisers Grant Thornton.
The 2006 International Business Owners Survey (IBOS), reported that only 35% of medium-sized UK businesses would like the Euro to be introduced.
Regionally, businesses located in Northern Ireland (58%) were the strongest advocates of joining the EU. Businesses in London were strongly against the step, however, with only 29% of those questioned believing the UK should adopt the new currency.
Grant Thornton’s survey also showed that UK firms have seen the least change in competition, labour supply and outsourcing conditions since the EU enlargement in 2004.
Some 17% of UK businesses reported increased competition in home market, compared to Germany and Poland (49%).
The survey indicated that UK firms are not making the most of access to the new EU members.
Only 11% of medium-sized UK businesses have increased outsourcing to the enlargement countries – half the EU average – and in sharp contrast to Ireland where 58% of businesses have taken advantage of easier trade conditions.
Less than 40% of the UK businesses surveyed said they export – down from 50% in 1997, and below the current EU average of 42%.
The main foreign market for UK businesses is Germany, where 35% of businesses export to, followed by France (32%) and the USA (29%).
Only 50% of UK businesses questioned said they would like the enlargement process to continue – the second lowest European percentage after Germany (49%).
Head of growth and strategic services at Grant Thornton Jim Rogers, said: “UK mid corporates have been quick to recognise the relative lacklustre economic performance of the eurozone, and the loss of international competitiveness due to the strength of the Euro. Politicians need to ensure businesses of all sizes are involved in the debate about whether the UK should join the single currency.”
© Crimson Business Ltd. 2006