The Scotsman

Majority of British firms not planning for life after Brexit

● Calls for clarity as businesses put off preparatio­ns and deal confidence wanes

- By HANNAH BURLEY hannah.burley@jpress.co.uk

a third of large businesses and one-fifth of small firms in the UK are planning for the impact of Brexit, prompting finance profession­als to call for more clarity surroundin­g the process.

The latest Brexit tracker survey from accountanc­y body Icas and legal firm Brodies foundthatj­ustathirdo­fbigger businesses have started “scenario planning” for the potential impact the UK’S departure from the EU may have on hiring and logistics.

Slightly more, 43 per cent, have begun preparing for regulatory change, according to the survey.

Among smaller organisati­ons, classed as businesses with fewer than 250 employees, eight out of ten said they had taken “no action” to prepare for Brexit.

The research cited lack of clarity as a potential factor in preventing companies from making Brexit scenario preptry arations, as it revealed the majority of businesses did not understand several of the key elements the UK government is currently negotiatin­g with the EU.

Only 32 per cent described the customs partnershi­p as “very or fairly clear”, with just 26 per cent giving the same rating to the “common rule book” covering trade in goods.

Meanwhile, confidence that the UK government can negotiate a free trade deal with the EU is waning, the survey said.

The number of chartered accountant­s who believe the government will be able to negotiate a free trade agreement has fallen to 29 per cent, down from 36 per cent in autumn last year. The number of respondent­s who selected “don’t know” has doubled, rising 9 per cent last autumn to 18 per cent this summer.

Despite these changes, participan­ts’ preference­s regarding the future relationsh­ip between the UK and EU remained stable, with 62 per cent preferring that the UK remains in the single market, 5 per cent wanting the counonly to stay in the EU customs union, and 26 per cent favouring a free trade agreement with the bloc.

Bruce Cartwright, Icas chief executive, commented: “It has always been the case that ‘nothing is agreed until all is agreed’.

“Icas members’ concern over the outcome of the Brexit process is understand­able, since there would appear to be some fundamenta­l areas of disagreeme­nt with only a few months to go.

“There is, however, a clear shared objective to reach agreement and deliver much needed clarity.”

Christine O’neill, chairman atbrodies,added:“manysmall and medium-sized enterprise­s simply do not have the resources to ‘scenario plan’ or to invest in contingenc­y measures in anticipati­on of Brexit.

“Rather, they will rely on industry bodies and on government to provide guidance and support.”

She added that businesses should pay close attention to the guidance and proposed orders being released over the next few months under Brexit legislatio­n.

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