Firms in ‘ moment of peril’ on Brexit and virus

Sunak to set out strategy as fears rise for economy

BUSINESSES IN Yorkshire and across the country are in a “moment of peril”, it has been warned, as the threat of a no- deal Brexit and the implications of a second wave of coronavirus are looming over the economy.

The Government was facing mounting calls yesterday to strengthen financial support relating to coronavirus, and Chancellor Rishi Sunak will today address the House of Commons to set out his plan for the coming months, scrapping the Winter Budget due to the urgency.

Downing Street admitted time was running out to reach a trade deal with the EU, and figures show just one in four businesses are ready for post- Brexit arrangements.

The British Chambers of Commerce ( BCC) said there were 26 key questions that remain to be answered. The group said its research suggested preparation for the coming changes after Brexit was low due to the “unprecedented challenges” facing companies.

The Bank of England’s governor, Andrew Bailey, yesterday said it was time to “stop and rethink” the furlough scheme in favour of a targeted approach.

Andinanaddresstothenation, Labour leader Sir Keir Starmer demanded a ‘ Plan B’ for the economy alongside new restrictions, after calls from the Confederation of British Industry and trade unions to continue some form of support after furlough ends.

Shadow Business Secretary Ed Miliband, the Doncaster North MP, said: “Businesses are in desperate need of certainty and the Government must urgently outline the measures it will take to prevent mass unemployment.

“The Government must stop posturing and ensure it delivers the ‘ oven- ready’ trade deal with the EU promised during the election, and ensure all preparations are in place for the end of the transition period which will be vital for so many businesses across the UK.

“This is a moment of peril for Yorkshire’s businesses. The Government needs to step up, do its job and give firms and workers the support they need and deserve.”

Mr Sunak is understood to be weighing up several possible measures to subsidise workers’ wages, and Prime Minister Boris Johnson promised “creative and imaginative” action. But the Chancellor of the Duchy of Lancaster, Michael Gove, said just one in four businesses believes it is “fully ready” for the post- Brexit arrangements.

He said more are becoming prepared but there are “still many” who have “not quite taken the steps they need to”, and added: “Our survey evidence indicates while 78 per cent of businesses have taken steps, just 24 per cent believe they are fully ready.”

He revealed that 43 per cent of businesses believed the transition period would be extended, despite the deadline for that being possible having passed.