The Courier & Advertiser (Perth and Perthshire Edition)
Brexit impacts investment decisions
Eight out of 10 firms say Brexit has had a negative effect on investment decisions, according to new CBI research on business preparations.
The survey of 236 firms, representing 101 large companies and 135 SMEs, also revealed the majority will implement damaging contingency plans in the absence of greater certainty on Brexit by December.
Contingency plans include cutting jobs, adjusting supply chains outside the UK, stockpiling goods and relocating production and services overseas.
Almost one in five firms say the point of no return for triggering their plans has already passed.
Carolyn Fairbairn, CBI directorgeneral, warned the “speed of negotiations is being outpaced by the reality firms are facing on the ground”.
She added: “Unless a withdrawal agreement is locked down by December, firms will press the button on their contingency plans.
“Jobs will be lost and supply chains moved.
“The knock-on effect for the UK economy would be significant.
“Living standards would be affected and less money would be available for vital public services including schools, hospitals and housing.”
The CBI chief said the uncertain environment was “draining investment” from the UK.
“From a multinational plastics manufacturer which has cancelled a £7 million investment, to a fashion house shelving £50m plans for a new UK factory, these are grave losses to our economy,” she said.
“Many firms won’t publicise these decisions, yet their impact will show in lower GDP years down the line.
“As long as no deal remains a possibility, the effect is corrosive for the UK economy, jobs and communities.
“Businesses have displayed remarkable resilience since the referendum, but patience is now threadbare.
“Negotiators must secure the Withdrawal Agreement before December to unlock a transition period.
“The message to politicians on all sides is: ‘your actions will echo through generations’.”