Brexit uncertainty has wobbled 58% of UK firms, says business body

Four-fifths of UK companies have cut or withheld investment because of the uncertainty caused by Brexit, Britain’s biggest business lobby said. About 58% of businesses have made plans to cut jobs, adjust supply chains, relocate production and services or stockpile products if no clarity emerges soon on Britain’s future relationship with the EU after Brexit, said the Confederation of British Industry. In a survey of 236 companies, it found 41% have contingency plans.

As time ticks down to Britain’s March departure from the world’s biggest trading bloc, talks are deadlocked in Brussels. That has weighed on corporate confidence in the British economy, with firms clamouring to find out what future trading conditions with the EU will be so they can adjust operations. Absent progress, they are preparing for a worst-case scenario of a no-deal exit.

“As long as ‘no deal’ remains a possibility, the effect is corrosive for the UK economy, jobs and communities,” said CBI director-general Carolyn Fairbairn. “The situation is now urgent. The speed of negotiations is being outpaced by the reality firms are facing.”

The CBI said it is already too late for 19% of firms to stop implementing further economically damaging contingency plans. It will be too late for another 15% this month, another 24% next month and another 24% in December.