Brewers Chartered Accountants

Firms urged to step up no-deal preparations

24 of 27 areas of the UK economy face disruption if we have a no-deal Brexit according to the Confederation of British Industry (CBI).

Its warning came in a report that also gives 200 recommendations on improving the UKs no-deal contingency plans in order to try and mitigate the potential negative effects.

The ‘What happens next?' report has been compiled using thousands of interviews with businesses of all sizes and sectors across the entire UK economy.

According to the report the sectors best prepared for the immediate effects of no-deal are in financial services, broadcasting and life sciences.

The UK remains on course to leave the EU on 31 October 2019, with new Prime Minister Boris Johnson claiming in The Times that "no-deal is a very real prospect".

However, despite the CBI urging businesses and government to do everything they can to prepare for no-deal, Josh Hardie, the Deputy Director General of the CBI warned that neither the UK nor the EU could completely "mitigate" the disruption of Britain leaving without a deal.

"We can reduce but not remove the damage of no-deal," he said.

"It’s not just about queues at ports; the invisible impact of severing services trade overnight would harm firms across the country."

And the authors of the CBI report said:

"Much of the business community will not be ready for no-deal.

"For hundreds of thousands of small companies, diverting precious resources - both human and financial - to Brexit preparedness measures is out of reach.

"The change in the scheduled date for no-deal has also had an impact on business readiness."

If you would like to discuss the potential impact of Brexit on your business, please give us a call on 01483 205850.

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