UK businesses are
warning that recent Brexit uncertainty has significantly affected their sales
and investment plans over the last few months, a new CBI survey says.
A total of 273 firms
across the services, manufacturing, and distribution sectors took part in a
survey assessing how ongoing Brexit uncertainty has affected various aspects of
their business and what concerns them about a potential ‘no deal’ Brexit scenario.
Less than one month
before the UK is set to leave the European Union, firms believe:
- That the recent uncertainty
around Brexit has negatively affected sales (weighted balance of -58%) and
UK investment (-43%)
- That costs have increased
significantly (+59%) as a result of Brexit uncertainty, and that
stockpiling of goods is an everyday business reality (+43%) with ‘no deal’
still on the table
- Nearly 9 in 10 firms are
concerned about potential delays at borders arising from a ‘no deal’
scenario.
- Tariff changes also featured
strongly among firms’ fears under a ‘no deal’ scenario, with 57% of
respondents saying they were ‘extremely’ concerned and 19% ‘moderately’
concerned.
- Nearly half (47%) of
respondents reported ‘extreme’ concerns about uncertainty on EU citizens’
status, with 27% moderately concerned.
Commenting on the
findings, Rain Newton-Smith, CBI Chief Economist, said: “With Brexit stuck in
stalemate, this only means growing damage today and a weaker economy tomorrow.
Growth is at a near standstill and investment is evaporating; the economy is undoubtedly
slowing down.
“Businesses are
getting on with the day job and continue to show genuine resilience in the face
of recent uncertainty.
“But the spectre of
no deal is holding them back from investing in new factories, new overseas
markets and new jobs.
“No deal would
unleash a minefield of consequences that cannot be circumvented by mini-deals
and last-minute horse-trading. Holding out for unicorns will guarantee no deal.
Only backing a deal will take business uncertainty off boiling point.
“MPs must put jobs
and the UK’s economic wellbeing before dogma and finally agree a way forward.
Get behind the Prime Minister’s deal, but if you can’t, then get behind
something else fast, to protect communities and living standards.”
