The British Chambers
of Commerce has published an
evaluation of official UK Government guidance to businesses on critical
operational issues in the event of an unwanted ‘no deal’ exit on 31st October.
The leading business
group has found that, at the time of publication, 31 of 36 business-critical
areas are still marked amber or red, indicating that firms have incomplete or
insufficient information available to plan thoroughly for a ‘no deal’ outcome.
The BCC does not
believe that the impact of a messy and disorderly exit can be fully mitigated.
Some of the key questions facing businesses depend on negotiation or some level
of coordination between the UK and the EU. However, wherever possible, businesses
need government guidance that is visible, clear, complete, timely and
actionable to address key risks and prepare as much as possible for all
scenarios.
With just weeks
until the October 31st deadline, of the 36 questions most frequently raised by
companies, the leading business group’s assessment is that:
- 5 are marked green - the top
rating for available information based on our quality criteria;
- 21 are amber - indicating
that some information is available, but there are gaps and/or other
quality issues still to be addressed;
- 10 are red – indicating
little or no concrete information is available to help businesses to plan.
While government has
noticeably ramped up the volume of communication, advice and engagement around
a possible ‘no deal’ scenario in recent weeks, significant improvements are
still needed to the level of detail and specificity in order to assist business
contingency planning. The BCC continues to meet with government to discuss
business readiness and government has committed to work with the business group
to address the issues raised in the evaluation. As new and improved information
becomes publicly available, the dashboard will be updated.
On issues such as
the UK successor to the EU Structural Funds, access to an official UK market
access database on tariff levels, rules relating to staff transfers between the
UK and EU, and cross-border trade between Northern Ireland and the Republic of Ireland,
there is no clear information on which firms can base their future plans.
The research is not
an assessment of the economic impact of a no-deal exit, or a judgement on the
desirability of the policy change in each case. Instead, it is intended to
evaluate whether official guidance is clear enough for business decision-making
and forward planning.
Dr Adam Marshall,
Director General of the British Chambers of Commerce (BCC), said: "While
the government has ramped up communication to businesses in recent weeks, there
are still big gaps in the guidance available to help businesses to prepare for
Brexit, with just weeks to go until October 31st.
“Our business
communities don’t want to see a disorderly ‘no deal’ exit on October 31st,
which would lead to an overnight change in trading conditions. The guidance,
information and advice available to businesses is not specific enough to enable
firms to plan for an abrupt change.
“Averting a messy
and disorderly exit is still critical. Businesses across the UK want
politicians on all sides to come together and find a way forward – fast.”
