Brexit war will hurt economy and hit poorest most - CBI

In a strongly worded message to Theresa May’s top team, Confederation of British Industry (CBI) president Paul Drechsler said he was frustrated by a lack of unity which could derail progress on securing a deal when the UK leaves the EU in March 2019.

There would be “economic consequences” as a result of the “uncertainty and messing around”, he said.

Research by the business group found 60% of firms would begin implementing contingency plans for a “no deal” Brexit by the end of March 2018 unless progress has been made on guaranteeing transitional arrangements will be in place on the day the UK leaves the bloc.

Some 10% of the 306 member firms surveyed by the CBI had already started taking those steps, with a further 50% reaching that point over the next few months.

“By the end of March, 60% of people will have taken decisions that buy them a ticket to somewhere else,” Mr Drechsler said.

Some may choose to move overseas or hire more staff in EU countries but other firms could increase investment in the UK because of fears that supplies from the bloc would face barriers.

While big businesses could hedge their bets and adapt to changing conditions, small firms were struggling when “every week there’s another episode that creates some more excitement and mayhem” in the Brexit “soap opera”.

Mr Drechsler told the Press Association: “I think now is the time we need our Cabinet, our Government united - day in, day out, week in, week out, month in, month out until this is sorted out”.