Companies ‘Seriously Underprepared’ for No Deal Brexit

Written by: Keith Tully

Published: 19th August 2019

Business negotiations not going well for no deal brexitCompanies across the UK economy are “seriously underprepared” for a No Deal Brexit scenario, according to the interim director general of the Institute of Directors (IoD).

Edwin Morgan has told the Financial Times that small businesses in particular are struggling to make any meaningful preparations for what might happen if the UK were to exit the EU at the end of October without a deal on the terms of departure.

Mr Morgan has suggested that most businesses are waiting to see what happens with regard to Brexit negotiations before they make concrete plans to mitigate any impact they might feel in a No Deal situation.

“Until recently the level of planning has been fairly low. Our surveys show that businesses had been waiting to see what happened,” he is quoted as saying.

“The message from the government is getting clearer but is still not clear enough. No Deal wasn’t the official policy and still technically isn’t.”

Mr Morgan from the IoD also said that there has so far been “no financial support” and “little accessible information” made available by the government to help businesses plan for a possible No Deal Brexit.

Meanwhile, Mike Cherry from the Federation of Small Businesses has said that the “ongoing political uncertainty” around Brexit is making it impossible for small scale companies across the UK to invest, expand and take on new employees because they “don’t know what the future holds”.

A spokesperson for the Confederation of British Industry said that companies can “reduce but not remove the damage of No Deal”, with the organisation eager to see the UK leaving the EU with rather than without a deal.

Discussions around the potential ramifications of No Deal Brexit on different parts of life and the economy in the UK increased in their intensity in recent days after a confidential report created for the government was leaked to the press and published in the Sunday Times.

Details in those documents appear to suggest that a No Deal situation would lead to shortages of food and fuel, a hard border on the island of Ireland and chaos at major British ports.

Keith Tully

Keith Tully

Join Keith Tully on Linked In Follow Keith Tully on Twitter

Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

Meet our Team of Experts
Director Support - Business suffering from Cash-Flow Problems?
If your company is financially distressed, we also offer the below services:
Business debt recovery

  • Recover Unpaid Invoices of £5k+
  • Expert Credit Control Services
  • Stop Late Payers & Bad Debts
Visit Site
Time to pay experts

  • Get Breathing Space with HMRC
  • Support with Business Tax Arrears
  • 35 Years HMRC Negotiation
Visit Site
UK Business Finance

  • Rejected for a CBILS Loan?
  • Get Emergency Business Funding
  • Supporting 1000+ UK Companies
Visit Site
Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Dealing with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
Number of UK Offices
Directors Helped
Licensed Insolvency Practitioners

This site uses cookies to monitor site performance and provide a more responsive and personalised experience. You must agree to our use of certain cookies. For more information on how we use and manage cookies please read our PRIVACY POLICY