CBI warns time running out for Brexit decisions

Time is running out for companies to make Brexit decisions, according to a survey by the Confederation of British Industry (CBI), which has urged business and politicians to unite so negotiations can move forward and, as a matter of urgency, transitional arrangements can be finalised. New research presented to the CBI’s annual conference yesterday reveals that 60% of UK businesses will trigger Brexit contingency plans by March 2018 if negotiations fail to agree transitional arrangements. Some 10% of companies have already implemented “no deal” contingency plans. The survey shows that 87% of more than 300 UK companies surveyed have discussed Brexit at board level. CBI president Paul Drechsler urged the other 13% to “roll up their sleeves and get a move on”. Larger businesses are better prepared for Brexit, with SMEs struggling to plan and make predictions about outcomes, Mr Drechsler added. “Now, more than ever, business is looking for political leaders across Europe to step up. Brexit is only 508 days away. But for many businesses, their alarm clocks are set even earlier than that. They’re set to the moment they will actually enact their contingency plans. “For 10% of businesses, the alarm has already rung and they’ve begun moving staff or slowing recruitment. Without a transitional deal, when EU leaders gather in Brussels for the March summit, a total of 60% of businesses will have done the same. The clock is ticking,” he warned. Mr Drechsler said if businesses could be certain of a transition deal, they would stop making contingency plans for no deal and negotiations could move forward to establishing a future trade relationship between the EU and UK. “Just think what we could achieve if we do it right. A constructive and collaborative approach to Brexit would reassure millions of EU nationals in the UK and tell them that yes, we do want you to carry on contributing. It would make free trade deals quicker and easier to accomplish. And it would project an image of a strong, self-confident nation across the world. But most of all it would be a principled way to get the deal that we want and that Europe wants,” he said. Opening the CBI’s annual conference, Mr Drechsler said the current approach to Brexit is like a soap opera and called for a more cohesive approach that has a real chance of delivering success. “Business has a responsibility to speak up and suggest solutions when we see obstacles in the way of UK prosperity. Currently, we see one major challenge – not Brexit itself: we’re 100% committed to making a success of it. But the approach to Brexit. “We need a single, clear strategy. A plan for what we want, and what kind of relationship we seek with the EU,” he said. Mr Drechsler added that business needs to get behind the principles set out by UK Prime Minister Theresa May in her September speech in Florence, designed to ease tensions and move negotiations forward. “Genuine steps forward such as the Prime Minister’s Florence speech don’t get the recognition they deserve. That speech represented real progress. It put the needs of the economy first. It set a cooperative tone. And it unlocked progress. “We need to learn from that and recognise that this is the moment to unite behind the principles of the Florence speech. “But time is of the essence. We must leave behind the episodic approach and take this opportunity to move forward as one – business and politicians, here and abroad,” he said.

CBI warns time running out for Brexit decisions

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