Home Brexit Business chiefs warn firms to prepare for no-deal Brexit

Business chiefs warn firms to prepare for no-deal Brexit

14th Jun 19 9:48 am

Business leaders have warned firms to prepare for a no-deal Brexit under the next Conservative prime minister as politicians cannot be trusted to solve the crisis.

Edwin Morgan, interim director general of the Institute of Directors (IoD) said that the UK are risking wasting the Brexit delay and said many “seem to have forgotten” a deal needs to be secured asap.

He further highlighted that several Tory leadership hopefuls are willing to leave the European Union without a deal.

The IoD conducted a survey of almost 1,000 of their members which showed fewer than one in four have actually activated a Brexit contingency plan in April.

More than half do not have any plans in place, and nearly one in three are still waiting for the shape of Britain’s future relationship with the EU.

The IoD warned company bosses should “use the time left to ensure they understand their potential exposure” if the UK crashes out with no agreement.

The warning comes just a day after top UK companies launched a stinging attack on MPs as they have been talking up a no-deal Brexit.

They further warned that it is already causing heavy job losses across the UK as many firms have blamed Brexit for their closure, downsizing or have moved out of the UK.

At an event at parliament representatives from Manufacturing, car makers, farming and food and drink companies all sounded the alarm at the event.

One representative warned this could “consign a generation of highly skilled workers to the scrapheap.”

In a statement on Friday Morgan said the Commons decision not to adopt Jeremy Corbyn’s plans to block a no-deal by giving MPs control, “made clear how real the possibility of no deal is.”

Morgan said, “Business can have no absolute reassurance that an agreement will be reached, particularly given the commitment of some Conservative leadership candidates to leaving the EU in October with or without a deal. It feels like the extension is at risk of being wasted.

“It shouldn’t need saying, but many seem to have forgotten that getting a deal would be by some distance the better outcome, both for the UK and the EU.”

He further attacked MPs who are playing down the risks of a no-deal with misleading language, he added, “no deal is not clean” as the mitigations announced thus far are temporary, incomplete and untested with industry. Meaning the UK will then have enter into talks with the EU again.

“If businesses can’t have faith in politicians, that means they have to look out for themselves.”

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