Will they stay or will they go?

On the 24th June the UK shocked the world with its decision to leave the EU. The outcome saw the pound drop to its lowest level against the US dollar in more than three decades, with economic experts warning that the economy is set to experience ongoing volatility.  However, with emotions calming UK Government is keen to demonstrate that the UK remains an attractive place to invest post Brexit and it appears that this positive thinking is reaping rewards and boosting business confidence. According to GlaxoSmithKline the UK remains an attractive location to invest despite the surprise Brexit vote, and their faith is evident by a £275m investment to expand its UK manufacturing sites, providing more jobs in addition to the 16,000 it currently employs in the UK, and a strong export market.

The investment will be spread across three of its UK manufacturing sites: Barnard Castle in County Durham, Montrose in Angus, and Ware in Hertfordshire, with the decision being prompted by the UK's skilled workforce and competitive tax system.

There were some fears that pharmaceutical firms such as GSK and AstraZeneca may seek to move their headquarters following the outcome of the EU referendum, however, the UK's economic strengths and intelligent environmental design combined with financial discipline, still remain strong and may have outweighed any uncertainty for the UK's lie sciences sector.

Concerns that the free movement of highly qualified scientists across Europe and a single EU framework for regulating and approving drugs would make Brexit a mistake, have been outweighed by Britain's highly-skilled workforce, relatively low tax rates, and incentives for investing in research. Furthermore, there is also the benefit of a weaker pound when producing products for foreign markets.

The oil and gas sector is also remaining positive with analysts asserting that the UK voting to leave the EU is 'unlikely' to have a major adverse impact on the nation’s offshore oil and gas industry. After all, Norway, a key player in the energy industry, already exists successfully outside of the EU so why can't the UK? Neither SSE, Royal Dutch Shell or BP have re-coiled in the wake of Brexit and while there may be a time of volatility, if the government step-up with clear leadership then they will work closely to minimise implications.

In the wake of Brexit there were also concerns from the UK environmental sector. After the government has spent the last few years rolling back subsidies on renewable methods of energy production, it is feared that Brexit would spell further trouble for this struggling industry. Several years ago, the EU published its Ambient Air Quality Directive, intended to bring harmful levels of pollutants under control in every member state. The directive was aimed at controlling nitrogen dioxide (NO2) which is believed to claim the lives of thousands of Britons every year. With no EU body to enforce any targets set by the government and hold it to account for non-compliance, will the UK uphold its responsibilities of cutting carbon emissions and climate change? After all, London in particular has surpassed acceptable levels for years now, accruing hundreds of thousands of pounds’ worth of fines from the EU.

In June the government’s latest carbon budget pledged to reduce carbon emissions by 57% by 2030 from 1990 levels, which is a 17% increase on the targets imposed by the EU! Additionally, Mayor of London Sadiq Khan has built upon the Ultra-Low Emissions Zone (ULEZ) plan, significantly expanded it  and attempting to bring forward the date for its implementation. The government’s ability to uphold its promises remain to be seen but it appears that air quality and pollution still remain very high on the UK's agenda post Brexit. Could Brexit be good for the environment? 

The UK secretary for Energy and Climate Amber Rudd has acknowledged that the decision to exit the EU raises a host of questions for the energy sector, however, government commitment of securing our energy supply, keeping bills low and building a low carbon energy infrastructure remains the same. The recent RenewableUK’s Scottish Renewables Onshore Wind Conference went some way to reassure that this is the perfect time for the renewable energy market to step up and offer cheap, home-grown electricity from projects that are ready to build and be financed now. This will attract hundreds of millions of pounds of capital investment for our economy over the next few years.