THE forthcoming EU Referendum is severely affecting business planning, according to a survey by leading accountants Bishop Fleming, which has a branch in Worcester.

The firm with offices in College Yard next to Worcester Cathedral has just published its latest Business Barometer, a new quarterly survey which takes a snapshot of businesses across all sectors and regions to assess how they are expecting their businesses to develop over the next twelve months.

According to Matthew Lee, Bishop Fleming's managing partner: "There is no doubt that business confidence this side of the referendum has been hit by unease over the outcome, whatever that may be. This is particularly affecting recruitment where some sectors are also suffering the effects of the new Living Wage. As the outlook for the economy is unpredictable ahead of the EU vote, firms are reluctant to either use their own cash reserves or seek finance to purchase new equipment or property. Businesses cannot plan ahead with confidence at the moment."

A third of businesses surveyed did not expect their turnover to increase in the next twelve months, reflecting modest growth and the fragility of the economy.

Mr Lee added: "Consumer demand has been affected by the forthcoming vote. Certain sectors of industry are struggling right now and are unable to raise volumes or prices by much to meet pressures from the Living Wage and pension auto-enrolment. This squeeze on margins seems likely to continue for the foreseeable future, with a likely increase in insolvencies.

"Overall the survey reveals a disturbing quandary for businesses at this time as they await the outcome of the referendum. No one wants to commit to long term plans until the economic landscape becomes clearer."

More than two fifths of those responding said they were not planning to make any new investment in their businesses in the next year, reflecting a reticence to commit to any new expenditure. Two thirds of businesses surveyed involved in international trade stated they did not expect overseas orders to increase in the next year and thought exchange rate movements would adversely affect their foreign transactions.