Fearing an economic downturn, small businesses have increased the amount of cash held in their current accounts by over 78 per cent in the last two years.
A report published by Hampshire Trust Bank (HTB) found that Brexit fears have led to business owners holding extra money in their current accounts, so they have easily accessible funds. The report reveals that the average business current account balance is now £726,000 compared with £408,000 two years ago.
According to the report, this money will be used to pay off any loans in the event of a post-Brexit recession, and for any investment opportunities that may arise after leaving the European Union.
Many companies began stockpiling ahead of the previous March deadline, and HTB found that this extra cash will also be used to stockpile business supplies.
Modern Work published data from the Association of Independent Professionals and the Self-Employed (IPSE) last week showing that 70 per cent of freelancers predict their business costs will increase in the coming year. Freelancers also cite Brexit as the biggest factor holding back their business performance, closely followed by government fiscal policy relating to freelancing.