Failure to secure Brexit deal leaves small firms ‘on the brink’

Failure to secure a Brexit deal risks causing “significant” damage to tens of thousands of small firms in the UK, according to a lobby group.

The Federation of Small Businesses (FSB) said the lack of progress is increasing uncertainty and forcing many companies to consider shelving business decisions, pausing investment and cutting staff.

FSB research shows that among small businesses that are preparing for a “no deal” scenario, 27 per cent have already spent more than £2,000 planning for such an outcome, while almost one in ten (12 per cent) have spent more than £5,000.

Seven per cent have spent more than £10,000 and a third of small firms say they would postpone major business decisions or innovations in the event of a “no deal” outcome, while around one in five would cut staff or expenditure.

FSB national chairman Mike Cherry urged those on both sides of the negotiating table to “stop playing politics and get on with securing a pro-business deal”.

He added: “With 162 days left until Brexit day, the time for political games is over – we need the UK government and EU to intensify negotiations to ensure that a pro-business deal focussed on trade, talent and transition is secured.”

The FSB is also urging businesses to think about how no deal would affect them. It comes amid talk of extending the Brexit transition period. 0 Mike Cherry of FSB: ‘The time for political games is over’