Brexit ‘a drain on UK investment’

FEARS over Brexit among companies is ‘draining investment’ from the UK, a major business group warns.

Eight in ten firms say the UK’s impending departure from the EU is having a ‘negative impact’ on their investment decisions, according to a CBI survey of 236 firms.

Carolyn Fairbairn, CBI director general, said: ‘From a multinational plastics manufacturer which has cancelled a £7 million investment to a fashion house shelving £50million plans for a new UK factory, these are grave losses to our economy.

‘Many firms won’t publicise these decisions, yet their impact will show in lower GDP years down the line.’

The CBI, which wants a withdrawal deal agreed with the EU by December, also said 58 per cent of firms have prepared contingency plans for a worst-case scenario Brexit. Plans include axing jobs, stockpiling and moving company resources abroad.