Brexit uncertainty is having a negative impact on investment decisions for 80% of businesses in the UK, a survey by the Confederation of British Industry (CBI) has shown.
Carolyn Fairbairn, director-general of the CBI, said negotiations are being “outpaced by the reality firms are facing on the ground”, with many businesses already planning for a no-deal scenario.
The research found that 58% have made contingency plans, with the majority planning to put these in place by December 2018 if no agreement is reached.
For a further 19%, the point of no return for triggering their plans has already passed.
These contingency plans include adjusting supply chains, stockpiling goods, relocating production and services overseas, and moving jobs.
“Unless a withdrawal agreement is locked down by December, firms will press the button on their contingency plans. Jobs will be lost and supply chains moved.
“The knock-on effect for the UK economy would be significant. Living standards would be affected and less money would be available for vital public services including schools, hospitals and housing.
“As long as ‘no deal’ remains a possibility, the effect is corrosive for the UK economy, jobs and communities.”
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