Many small businesses have not or cannot prepare for no-deal, study

New data revealed on Friday that many small businesses in the UK have either not prepared or are unable to prepare for a no-deal departure from the European Union.

New research from the Federation of Small Businesses shows that 39% of small businesses in the UK believe a no-deal departure from the European Union will have a negative impact on them.

Of these small firms, only 21% have planned or have prepared for the anticipated problems. Meanwhile, 63% do not think they are able to plan.

The Federation of Small Businesses said that, for those that have prepared, the average costs have amounted to roughly £2,000.

For smaller businesses that export and import, the average cost increases to £3,000.

Moreover, 31% of the small businesses that have prepared have stockpiled ahead of the extended Halloween deadline.

“As the risk of a chaotic no-deal Brexit on 31 October remains alive and kicking, it is worrying that many small firms have either not prepared or are finding that they can’t prepare,” Mike Cherry, National Chairman of the Federation of Small Businesses, commented on the data.

“Ongoing uncertainty is to blame for preparations hitting the skids with the picture still not clear as to how the UK will leave the EU on 31 October. Until we get clarity, small firms must prepare for the cliff edge where possible, and make preparations for a no-deal Brexit,” Mike Cherry continued.

“Preparing for this outcome is coming at a high price though with small firms being hit by an unstable pound and having to shell out money on a potential outcome that has been highly disruptive, remains uncertain and is unwanted. Government must use what little time is left before 31 October to provide small firms with the support they need to navigate the uncharted and turbulent waters of a no-deal Brexit.”

As the Brexit deadline approaches, the only certainty that prevails is additional uncertainty.

Earlier this week, the Supreme Court ruled that Boris Johnson’s prorogation of Parliament not only illegal but null and void.

Previous articlePeel Hunt believes there is value in Burford
Next articleHowsy: tech giants raise local rents