Businesses warn Theresa May they are being 'hung out to dry' as no-deal Brexit looms
3 min read
Business are being "hung out to dry" by a lack of information from the Government on how they should cope with a no-deal Brexit, bosses have warned Theresa May.
The British Chambers of Commerce - an umbrella group for some 75,000 businesses - urged the Government to answer a string of "critical questions" they said remain unanswered on the prospect of Britain leaving the EU without an agreement.
The group pointed out that businesses trading between the UK and the EU still do not know what tariffs they might face under a no-deal Brexit with less than 50 days to go until the March 29 deadline.
The BCC also demanded answers on whether firms will be able to fly people and goods between the EU and UK under a no-deal; what inspection regimes could be in place for goods; whether they will have to pay mobile data roaming charges; and whether any existing EU trade agreements will be rolled over if Britain laves the bloc without an agreement.
The group meanwhile urged clarity on what regulatory regimes will oversee businesses if a no-deal exit happens - and whether staff overseas staff could face fresh visa restrictions if the UK quits without a deal.
BCC director general Adam Marshall warned: "In less than 50 days, UK firms could face the biggest change to their terms of trade in over a generation, without the information and clarity they need to navigate their forward course.
“There is a very real risk that a lack of clear, actionable information from government will leave firms, their people and their communities hung out to dry."
The business chief said companies were "still in the dark" on issues ranging "from contracts through to customs" - and warned that they were now shelving investment plans because of a lack of clarity from the Government.
"It is little wonder that many firms have been holding back on investment, stockpiling, and even opening offices and moving operations and jobs elsewhere," he said.
"The imperative remains to avoid a messy and disorderly exit on March 29th, but businesses need answers they can base decisions on, no matter the outcome. The lack of clear, precise answers is now causing real damage to many businesses, and to the wider economy."
The stark warning from the BCC comes just days after Chancellor Philip Hammond warned that Britain's economy was being “overshadowed” by Brexit.
New figures for 2018 showed that the British economy grew by just 1.4% over the year - the lowest annual rate of growth since 2012.
The Chancellor said: “It’s a solid performance from the economy when you took at what’s happening globally and in other competitor countries.
“But of course there is no doubt that our economy is being overshadowed by the uncertainty created by the Brexit process.
“The soon we can resolve that the better, and the quicker we can get back to more robust growth in the future.”
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