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Businesses remain in the dark as Brexit negotiations stumble on
The potential failure to reach a Brexit deal remains a top concern for businesses amid warnings companies are being left in the dark.
With less than a month before the end of the transition period for Britain’s exit from the EU, negotiations are still stumbling on while there remain several unanswered questions on critical areas affecting operations for firms that currently trade with Europe.
The latest report by Business West reveals 41 per cent of the 500 businesses surveyed state the UK’s departure from the EU single market and customs union on January 1 2021 will impact them.
A further 32 per cent say they remain in the dark as to how they will be affected by Brexit, such is the degree of complexity and uncertainty that surrounds the unravelling of current trade arrangements with Britain’s largest trading partner.
It comes as the British Chambers of Commerce warns that with just 24 days to go, businesses still have insufficient official information available in 24 critical areas, undermining their ability to prepare for change.
Commenting on the latest survey findings, Phil Smith, managing director of Business West, says it’s time the government provided businesses with clear, comprehensive guidance and the support they need to prepare for Brexit.
“Much of the media attention of the last few days has been on the theatrics of UK and EU negotiations – pizza deliveries and all,” said Smith.
“Our findings highlight the worrying practical concerns that businesses still have and the vital importance of agreeing a deal. Even at this late stage many businesses say they still have a limited understanding of the impact of Brexit on their business or report they are not fully prepared for the UK’s departure.
“There is a real risk of a big shock to local firms if we leave without a deal. It also underlines the importance of a deal that includes phase in times to give businesses further time to adapt – a deal without delays in enforcement of the new rules risks creating a big economic bump in January.
“It is time to stop the drama, conclude the deal and give further time and support for local businesses to adapt. After a tough 2020, this is not the time to drag the economy through further uncertainty in the coming months.”
Phil Smith says it’s time to stop the drama and secure a Brexit deal – photo courtesy of Business West
Among the Business West survey respondents, 46 per cent said it is Brexit rather than Covid-19 keeping them awake at night, even in the context of a global pandemic and economic recession.
Of the 349 businesses who stated they will definitely be affected by Brexit or are unsure of the impact, only 36 per cent appear to have comprehensive insight and understanding of the consequences it will have on their operations, while 12 per cent (mainly SMEs) reported having no understanding of the impact of Brexit whatsoever.
Less than a third (31 per cent) of businesses said that they felt equipped to adapt, while a quarter of businesses in the region admit to being unprepared for what January 1 brings.
Main photo by Lowie Trevena
Read more: Unanswered questions as UK prepares for ‘Australia-style’ exit from EU
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