Firms may leave ‘without cause’

BUSINESSES have started to trigger their Brexit contingency plans even before knowing the details of the UK’S departure from the EU, or even the type of transition period that may be agreed upon.

Most businesses have held off so far, but 11pc are acting already, according to a survey from the Institute of Directors (IOD). The most common of those contingency plans include setting up subsidiaries in other EU countries, and postponing big investment projects.

That means Britain could be losing jobs and business activity across the Channel unnecessarily, as companies cannot yet know what Brexit will actually entail. The IOD has urged the Government to give businesses more information so that they can adjust their plans with a better idea of the end result of the negotiations. The survey found that 30pc of firms have started to study the impact of different scenarios and to plan for them, but have not implemented those plans. Another 16pc expect to undertake contingency planning but have not yet done so, while 33pc do not expect to engage in scenario and contingency planning.

The IOD also found that a large proportion of firms do not fully understand what it would mean if the UK and EU resorted to trading using World Trade Organisation rules.