According to industry experts, businesses in the UK are “praying” that MPs do everything they can to avoid a no-deal Brexit, including pushing the decision date back.
The businesses in question want to ensure that deals are made that protect trade before any divorce proceedings between the UK and EU come to fruition as they feel that “anything could happen” at this current stage.
Businesses were at first concerned about the lack of transparency as to what trade rules had been agreed upon, but with the Brexit deadline just under two months away on 29 March – and after Prime Minister Theresa May’s original negotiations with EU leaders were rejected by UK MPs – they are now becoming more and more focused on delaying a potential messy exit from the bloc.
Businesses including KFC and McDonald’s have said that a no-deal Brexit will have a “significant” impact on their supply chains. They have begun to stockpile in anticipation but warn that UK farmers will be devastated.
It isn’t just restaurants that will be affected, Airbus has said they will need to rethink their future investment strategy in a no-deal scenario. Ford has also stated that it would lose the company just over £6 million.
41 per cent of businesses are worried about a no-deal Brexit but are yet to start planning, according to research carried out by the Federation of Small Businesses.
It has been suggested that a lengthened period of uncertainty brought about by a Brexit delay would also hurt businesses. The Office for National Statistics found that investments into the UK had fallen for the third quarter in a row last year – the most consistent decline since the global financial crisis.