Small businesses are less pessimistic about the economic impact of Brexit than before the referendum. In May more than a quarter of small and medium-sized businesses believed that leaving the EU would lead to a recession, according to a survey by Opinium. This figure has dropped to 18 per cent, its latest survey found. Small businesses were more positive about several factors including wage growth, unemployment and inflation, despite the fall in the pound. However, 45 per cent still believed that there would be a slowdown in economic growth.
ITV to cut 120 jobs amid political uncertainty
ITV has announced plans to cut 120 jobs because of “political and economic uncertainty” over Brexit. Adam Crozier, ITV chief executive, said that the company had to save £25 million next year. The cuts will be made across the business, which employs 6,000 staff globally, including 3,000 in Britain. Broadcasters are facing the worst year for TV advertising since 2009, with revenues set to drop by up to 2 per cent. Before the referendum the advertising market had been expected to grow by more than 7 per cent this year after a 7.4 per cent increase in 2015.
Mandelson hits out over Wallonia trade deal veto
The EU is doomed if the Belgian region of Wallonia is allowed to veto the trade deal with Canada, Lord Mandelson has warned. The Labour peer, Britain’s former trade commissioner, told the centre-left Policy Network think tank that the union “cannot survive in a world where trade decisions have to be democratised across every parliament in the EU before they see the light of day”.
The trade deal is on the brink of collapse because of opposition from the Socialist-led Walloon parliament, which represents 3.5 million Belgians.