Business investments worth £65.5bn abandoned after Brexit vote

A third of British businesses either cancelled or postponed plans to invest following the UK's decision to leave the European Union.

That is according to a new report from financial services firm Hitachi Capital (Other OTC: HTCIF - news) , which commissioned pollsters YouGov (LSE: YOU.L - news) and the Centre for Economic and Business Research to compile the figures.

Based on responses from more than 1,000 senior business executives, the report indicates that 42% of large and medium-sized firms cancelled or put off investing following the Brexit vote.

Overall, one third of UK companies chose not to invest.

More than a fifth point to the devaluation of the pound as one of their main reasons for scrapping or holding off on their plans.

Sterling has dropped almost 20% in value against the dollar since June, with many companies affected by the resulting increased prices of goods and services brought in from abroad.

Some 21% said the uncertainty surrounding Britain's future in the single market impacted their decision, with a further 21% pointing to the possible impacts Brexit may have on the UK's economic health.

It is thought the lost or postponed investments were worth somewhere in the region of £65.5bn.

Robert Gordon, CEO of Hitachi Capital, has called on British companies to seize the opportunities Brexit could afford them rather than exercising undue caution.

"Exports from the EU to the UK totalled £290bn in 2015, firmly cementing the UK's place as a crucial trade partner," he said.

"With (Other OTC: WWTH - news) this in mind, businesses must not forget we are in a strong position when it comes to ensuring that the UK negotiates the best possible trade deals.

"We must pull together and continue to make investments to send this message to the rest of the world.

"Looking outwards, not inwards, is how the UK will thrive in a post-Brexit world."

Mr Gordon also points to the fact 70% of businesses would be likely to resume investment if uncertainty of the UK's membership of the single market was resolved, and says the Government under Theresa May should take steps to ease concerns.

"The fact that nearly three quarters of businesses would resume with investment if current pressing issues were resolved sends a clear message from businesses to the UK government - act quickly to prevent further losses."