British corporations have diverted $10 billion of funding to the EU attributable to Brexit, examine claims

The report said there had been no notable increase in FDI from British firms into countries outside of the EU.

Authors of the report speculated that British companies were offshoring production to the EU because they expected Brexit to increase barriers to trade and migration – making the U.K. a “less attractive place to do business.”

“The economic risk of Brexit is larger on the U.K. side of the Channel. British firms feel compelled to invest more in the EU but not the other way around,” said Dennis Novy, one of the report’s authors.

Rain Newton-Smith, chief economist at the Confederation of British Industry, said in a statement last week that the threat from a no-deal Brexit was “chilling investment and starving growth.”

“No-deal would create considerable issues for our world-leading services firms, in most cases only avoidable by moving jobs and investment from the U.K. to EU,” she said.

Earlier on Monday, figures from Britain’s Office for National Statistics showed that U.K. economic growth fell to its weakest in six years in the final quarter of 2018.

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