The British Chambers of Commerce (BCC), in partnership with independent business funder Bibby Financial Services (BFS), surveyed 2,530 firms in August and found that 20 per cent said they would move business to new premises in EU27 nations in the event of a 'no deal' Brexit.Similar percentages said they would cut investment in the event of a hard Brexit (21 per cent) while 18 per cent expected to cut recruitment."The fact that one in five businesses say in a ‘no deal’ scenario they would move part or all of their business to the EU27 is an important wake-up call – both on the need to agree an orderly exit from the EU and on the need for the UK government to enhance incentives for investment," said the BCC.

Many UK companies have not done a Brexit risk assessment

The organisation said the survey also highlights a concerning lack of Brexit preparation, with 62 per cent of firms admitting they had not done a risk assessment of the impact of Brexit to their business.BCC added, "The figures reflect a huge disparity between the preparations of the largest companies and their smaller counterparts: 69 per cent of micro firms (those with up to nine employees) have not completed an assessment, compared to 24 per cent of firms with over 250 employees."

BCC: Reaching a deal with the EU must be the UK government's top priority

Adam Marshall, director-general of the BCC, said, “Businesses are clear that reaching a deal with the EU, which addresses the future terms of trade and provides certainty, must be the government’s number one priority. “Our evidence is clear - failure to reach a political agreement would have real-world consequences, with significant decreases in both investment and recruitment. Larger firms and those active in international trade would suffer the most from a disorderly and sudden exit from the EU, but there will be impacts across the board. “Most concerning of all, a materially significant number of businesses are considering moving part or all of their operations to the EU in the event of ‘no deal’. Government must act urgently and decisively to get a comprehensive deal done. They also need to use the levers they have, such as the upcoming Budget, to ensure they provide the right conditions for growth at home.”

SMEs need clarity around the Customs Union and access to the Single Market

Edward Winterton, UK chief executive of BFS, added, “After more than two years of uncertainty, SMEs need answers over the future of the UK’s relationship with the EU. Specifically, they want clarity around the Customs Union, access to the Single Market and further detail on the practicalities of implementing this historic change. The consequences of a ‘no deal’ outcome could be disastrous for the 5.7 million SMEs in the UK – particularly for those buying and selling goods within the EU.” 

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