UK firms to trigger Brexit safety plans

■ Firms poised to implement Brexit contingency plans by Christmas

London, Oct. 21: The vast majority of British firms are poised to implement their Brexit contingency plans by Christmas if there isn’t greater clarity over the country’s exit from the European Union, a leading business lobby group warned on Sunday.

The Confederation of British Industry said these could include cutting jobs, adjusting supply chains outside the UK, stockpiling goods, and relocating production and services overseas.

The warning comes amid growing fears that Britain may crash out of the EU in March without a deal on the future relationship. That could see tariffs placed on British exports, border checks reinstalled, ◗ and restrictions imposed travelers and workers - a potentially toxic combination for businesses.

“The situation is now urgent,” said Carolyn Fairbairn, the CBI’s director general. “The speed of negotiations is being outpaced by the reality firms are facing on the ground.”

Discussions between the two sides have hit an ◗ impasse largely over how to maintain an open border between EU member Ireland and Northern Ireland, which is part of the United Kingdom.

A summit of EU leaders last week failed to yield a breakthrough and another gathering in November was cancelled. December is now the next scheduled summit, leaving the Brexit process tight ahead of Britain’s official departure date. Even if a deal is forged, there are doubts over British Prime Minister Theresa May’ ability to secure the necessary majority in Parliament given bitter divisions on the topic.

“Unless a Withdrawal Agreement is locked down by December, firms will press the button on their contingency plans,” said Fairbairn. “Jobs will be lost and supply chains moved.”

Fairbairn’s warning was based on a survey of 236 member firms tilted toward small and mediumsized companies with up to 500 employees, undertaken from Sept. 19 to October 8.