In the round, at least 275 finance companies have moved or are moving some of their business, staff, assets or legal entities to the EU from the U.K., according to the London-based think tank New Financial. Exchanges handling daily transactions have also upped sticks or at least reproduced their London services on the continent.
Labor
Net migration from the EU to Britain has fallen to its lowest level in a decade, according to the Office for National Statistics.
That’s hurt the hospitality industry, farming, construction and the National Health Service, which all face labor shortages and have traditionally relied on EU workers.
The U.K.’s buoyant jobs market is showing signs of Brexit jitters, with the number of people placed in permanent jobs falling in January for the first time since the 2016 vote to leave the EU.
Then there’s higher education. Many are concerned about the impact on international student enrollment and cross-cultural exchanges and learning programs within the EU. Heriot-Watt University in Edinburgh in part blamed Brexit for job cuts in 2017, while Manchester University also cited the uncertainty surrounding Britain’s departure when announcing the need to reduce costs.
Housing
Brexit is having a chilling effect on the U.K. housing market. Realtors say prices fell in the four months to January, pushing the Royal Institution of Chartered Surveyors’s headline price index to its lowest since 2012. Inquiries, sales and new instructions were also down in January, according to RICS.
The weaker property demand has hurt homebuilders, while the weak pound has pushed up the cost of imported materials and the sector’s labor supply could be hit by a cutback in immigration.
Autos
Brexit is completing a perfect storm for automakers.
With the looming prospect of potential tariffs and supply bottlenecks, and already struggling with declining diesel sales and a shift to electric cars, Jaguar Land Rover Automotive Plc announced it would cut 4,500 jobs, mostly in the U.K. Nissan Motor Co. scrapped plans to build the X-Trail sport utility vehicle in Sunderland, northeast England, and Honda Motor Co. said it will close its only British factory in 2021.
Brexit uncertainty has also harmed investment. Spending by carmakers on projects like upgrading machinery and factories fell to the lowest since the financial crisis in 2018, according to the Society of Motor Manufacturers.