Pandemic will magnify impact of no-deal Brexit, warn business leaders
- Credit: PA
The coronavirus pandemic will magnify the impact of a no-deal Brexit, new research suggests.
The Institute of Directors (IoD) has warned of a potential “double hit” from Covid-19 and leaving the EU without a trade deal.
A survey of almost 1,000 company directors found only one in 10 does not believe the pandemic will magnify the impact of a no-deal Brexit on their organisation.
Just under half of respondents said they are not fully prepared for the end of the transition period, while nearly a quarter reported their company may not be ready in time.
Around one in four of those polled said they do not expect Brexit to affect their organisation.
You may also want to watch:
Many directors said their company has built up cash reserves and plans to increase stockpiling, although the IoD said it is worrying some firms still need to obtain EU licences and authorisations.
Allie Renison, senior policy adviser at the IoD, said: “The prospect of no deal would be daunting enough, let alone dealing with it in the middle of a global pandemic.
- 1 A lesson from the last of Mainwaring's men
- 2 Tory anger as Labour to hold vote on establishing committee to investigate cronyism
- 3 PMQs: Commons speaker reprimands Boris Johnson over Greensill response
- 4 The stench of scandal seeping out from Britain
- 5 Nick Clegg says EU 'let itself and millions of Europeans' down over Covid vaccine programme
- 6 Scathing report accuses Boris Johnson of 'only caring for England'
- 7 MEPs again refuse to ratify Brexit deal amid concerns No 10 is flouting conditions
- 8 Boris Johnson's government 'doesn't think it has to be aide by rules', says former civil servant
- 9 European Council president faces call to resign over 'Sofagate' incident
- 10 How the vaccines have shifted opinions over Brexit
“These disruptions won’t cancel each other out, if anything they would compound the pain for British businesses.
“When it comes to preparing for Brexit proper, directors’ hands have been tied by a number of constraints and competing pressures. Reacting to the pandemic has taken up so much of business leaders’ time and energy throughout the year. On top of this, much of the information companies need is still subject to negotiations.
“Brexit adjustments will further add to businesses’ cashflow challenges in the months ahead. The government must look to how it can smooth that process.
“Financial support as seen in other countries, whether through vouchers to help access advice or through extending tax reliefs to facilitate that adjustment, would give small firms a much better chance of coping.”
Shadow business secretary Ed Miliband said: “Businesses are experiencing extreme uncertainty, facing the pressures of the coronavirus crisis, a deep recession and the end of the transition period approaching.
“It is vital that Boris Johnson delivers the oven-ready trade deal he promised was ready and then answers the questions so many businesses are asking about the future arrangements they need to plan for.
“Businesses desperately need clarity to prepare for the future and at the moment, with less than three months to go, many sectors are not being given the level of detail they need.”
A government spokesman said: “With fewer than three months to go, businesses need to prepare now for new procedures whether or not we reach a trade agreement with the EU, so that they can seize the significant opportunities that lie ahead.
“To help businesses get ready, we have launched a major communications campaign in the UK and EU, committed to investing £705m in jobs, infrastructure and technology at the border and provided a £84m support package to boost the capacity of the customs intermediary sector.”
Become a Supporter
The New European is proud of its journalism and we hope you are proud of it too. We believe our voice is important - both in representing the pro-EU perspective and also to help rebalance the right wing extremes of much of the UK national press. If you value what we are doing, you can help us by making a contribution to the cost of our journalism.