THE Institute of Directors has said it has detected the first signs that the Brexit vote will cost jobs in the UK as businesses prepare to cut investment and move activity overseas in response.

A snap survey of members by the business organisation found that 64 per cent thought the shock vote in favour of the UK leaving the European Union in Thursday’s referendum was negative for their businesses. Only 23 per cent viewed it as positive, while nine per cent thought it would make no difference.

With more than a third of respondents saying they planned to cut investment and five per cent expecting to shed jobs, the IoD said the results highlighted the scale of the unease triggered by the exit vote.

Around a quarter, 24 per cent, of respondents have frozen recruitment.

The IoD said the Bank of England needed to ensure the effects of the turbulence in financial markets following the vote did not infect the wider economy. Ministers had to minimise the impact on trade with EU countries.

Director general Simon Walker said: “The overwhelming priority now for business leaders is that steps are taken to protect the economy from the negative reaction in financial markets… next comes securing a new trade arrangement.”

Thirty two per cent of respondents said hiring would continue unchanged. Some 22 per cent were considering moving operations from the UK,with only one per cent planning to return any.