Thames Valley: KPMG partner offers New Year outlook on business in the region

Andrew Morgan, senior partner for KPMG Reading, has given his outlook on business in the Thames Valley in 2017.

Brexit

"There’s no denying the uncertainty created by the planned departure of the UK from the EU will impact business in the next 12 months, whatever route political progress takes after Article 50 is triggered in the first quarter.

"Business will look for clarity, so that solid, long-term plans can be established, based on what the UK seeks to achieve around the negotiating table. 

"As for specifics, after the impact of the fall in sterling, the key issue on the agenda of my clients is that a commercially appropriate immigration policy is implemented.

Access to labour is a key issue for businesses based in the Thames Valley, many of whom are able to attract the best international talent due to their global reputation and proximity to transport hubs like Heathrow. The region’s technology and services sectors, higher education and health service, are reliant on some extremely highly educated and skilled immigrants. For these industries, protecting the rights of EU nationals already residing in the Thames Valley and further enhancing its attractiveness to internationally-mobile talent is a priority. The Thames Valley cannot afford to lose the valuable input of so many talented people from Europe who provide a crucial contribution to our economy and society.

"It would be wrong to assume that the adjustments that will be demanded by Brexit will have only negative consequences. External change can be a catalyst for much-needed internal evolution and business transformation as well as a renewed vigour to capitalise on new opportunities presented by the market. For instance, just now the woes of sterling, do, in many cases boost UK competitiveness abroad. This should not be taken lightly. It offers a great chance for businesses to raise their ambitions and look to exports for new markets and revenue growth, albeit some firms face corresponding import price hikes."

Business in society

"The year after the social, political and economic turmoil of 2016 feels like a period in which business is and should be highly aware of its role in society; when firms will be increasingly judged on their social capital.

"For all that the private sector is quite rightly focused on doing things that make good business sense – for themselves, their suppliers and customers – I expect the challenge of using our resources and skills to make a difference on societal and economic issues to deepen.

"There are many ways businesses in the Thames Valley are and will address this agenda. For some the focus will be playing their part in improving the region’s social mobility record, through their recruitment practices, including their approach to apprenticeships, to getting more involved with the region’s schools.  For myself I also intend that KPMG continues to use its network of contacts in the Thames Valley to help business to have a voice in driving and shaping policy change."

KPMG

"A common thread running through our business and a fair proportion of our client work in this region in the next 12 months will be around transformation. 

"We will work closely with organisations, large and small, from across sectors including tech, life sciences, retail, financial services and of course the public sector; all parts of the economy responding to disruption and reinvention.  And even closer to home, for KPMG to thrive in an increasingly disrupted world we are moving from being a provider of individual services to sharing broad thinking to help clients solve their biggest challenges, with technology as well as our people, at the core.

"Within this theme are several issues preoccupying those leading many of the region’s organisations, which will inform our agenda, in particular building relationships with customers and improving cyber security, given the continuing threats of this nature."