The survey of 330 businesses, representing around one million employees across every sector and region of the UK, shows businesses are working hard to prepare for no deal, but those preparations are coming at a cost to the UK economy.
Top concerns for businesses in a no deal scenario are delays at borders, exchange rate volatility and regulatory trade barriers, the survey found.
Overall, businesses feel at least slightly more prepared now than in March, although smaller firms are still struggling with contingency planning.
Findings include:
- 82% of respondents do not want the UK to leave the EU without a deal on the 31st October
- 16% of respondents have already shifted their headquarters outside the UK as part of their contingency planning, with a further 37% planning to do so
- 7/10 firms have already adjusted their supply chains outside the UK, with another 10% planning to do so
- 50% of firms have raised prices and 19% plan to do so
- 21% firms feel totally prepared for a no deal Brexit in October compared to 7% of firms who felt totally prepared in March ahead of the then Brexit deadline
Dame Carolyn Fairbairn DBE, CBI director-general, said: “This survey shows the vast majority of businesses of all sizes want the UK to leave the EU with a deal. This is the first choice for eight in ten firms.
“At the same time, they are also preparing for a no deal outcome. It is welcome that 70% of CBI members report being moderately or significantly prepared for the disruption of no deal.
“More worryingly, this survey also lays bare the actions firms are taking to protect their business. They make for sombre reading. Seven in ten firms have adjusted their supply chains outside the UK, with a further one in ten planning to do so. “Headquarters are also leaving the UK. This means lost jobs and investment for communities across the country.
“Consumers are also being hit, with over half of respondents reporting price rises to cope with higher import costs caused by a weaker pound.
“While many firms can be prepared for a no deal Brexit, they cannot be protected. They have no choice but to take actions that will harm the UK economy.
“Firms are also aware a no deal Brexit does not mean the end of uncertainty; merely the beginning of even greater ambiguity.
“The overall message from this survey could not be clearer. Businesses across the UK support getting a deal. They want politicians on all sides to make this their top priority to protect jobs and livelihoods.”
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