UK Firms' Investment, Recruitment to Be Cut in Case of No-Deal Brexit - Commerce Chambers

MOSCOW (Pakistan Point News / Sputnik - 28th September, 2018) The British Chambers of Commerce (BCC) is calling on UK ministers to advance their efforts toward reaching an agreement with Brussels on post-Brexit relations, as a no-deal scenario could impact investment and recruitment opportunities for UK companies, the BCC said in a press release on Friday.

"A fifth of businesses surveyed (21%) will cut investment if there is 'no deal', 20% will move part or all of their business to the EU and 18% will cut recruitment - but in the event of a status quo transition these numbers fall dramatically. 62% of firms still haven't completed a Brexit risk assessment," the release read, revealing the results of a survey conducted by the BCC and Bibby Financial Services, in which over 2,500 UK companies were polled from August 1 to August 21.

According to the survey, the no-deal scenario will affect larger businesses and those active internationally ones most.

"Our evidence is clear failure to reach a political agreement would have real-world consequences, with significant decreases in both investment and recruitment. Larger firms and those active in international trade would suffer the most from a disorderly and sudden exit from the EU, but there will be impacts across the board," BCC Director General Dr.

Adam Marshall said, as quoted in the press release.

The survey revealed that "micro companies" those that have one-nine employees were the least likely to carry out a risk assessment of the Brexit impact, with 69 percent of them having failed to complete the assessment, while just 24 percent of companies with over 250 employees have not studied the risks.

The BCC explained this lack of preparation by "Brexit fatigue," claiming that companies do not take the possible Brexit consequences at face value.

"Too many businesses across the UK are still not ready for Brexit. Many smaller firms don't have the capacity to scenario plan, don't think they'll be affected, or have simply switched off from the process altogether," Marshall added.

He called on the UK government to provide answers to "the most basic questions" on the post-Brexit trading conditions.

In mid-September, the London started issuing packages of technical notes for businesses and people, including advice on how to prepare for the no-deal scenario.

While the United Kingdom is set to leave the European Union by late March 2019, progress of the London-Brussels talks is hindered by a number of delicate issues, making both sides concerned over a possible no-deal Brexit.