Morgan warns firms need guidance on life after EU to solve uncertainty

BUSINESSES FACE “pervasive uncertainty” over Brexit, the chairwoman of the Commons Treasury Committee has said.

Conservative former Education Secretary and Remain backer Nicky Morgan said firms needed more pragmatic guidance on what the long-term trade relationship would be between the UK and EU.

She branded the Government’s response to the committee’s report on the impact of Brexit “extraordinary”.

She stated: “In this environment of pervasive uncertainty, it is extraordinary that the Government – in its response to the committee’s report – is advising businesses to ‘understand’ and ‘explore potential impacts’ of ‘regulatory change’ arising from Brexit.

“Firms can hardly begin to understand change until they know what it consists of. Brexit uncertainty for businesses still looms large.”

Ms Morgan said that without clear information, companies would have to prepare for the “worst-case scenario” of operating on World Trade Organisation (WTO) terms if Britain quits the EU without a deal.

“In the absence of clarity, they will have no choice but to prepare for the one eventuality that they can understand – the worst-case scenario of a trade relationship based on WTO commitments.

“As the committee concluded, adaptation to WTO rules could involve a ‘relocation of jobs and economic activity from the UK to the rest of the EU’.”

She added: “Businesses are now crying out for the certainty of having a transition period secured... It is vital that remaining disagreements over the duration and governance of the transition period are resolved quickly.”