Responding to the Prime Minister’s statement on the progress of Brexit negotiations, Allie Renison, Senior Policy Advisor at the Institute of Directors, said:
“Few would doubt that getting ready for no deal in the middle of a pandemic will be a Herculean task for many businesses. Our figures show that most directors think that Covid will magnify the impact of no deal. It’s tied their hands throughout the year and put immense pressure on cashflow, and will continue to limit bandwidth in the months ahead.
"To help businesses prepare, Government must work closely with directors to aid their planning, providing information as soon as it comes to light. Financial support for small firms in particular should be stepped up, whether through vouchers or tax reliefs.
“While there may be opportunities on the other side of transition, it remains imperative to minimise the risks in getting there to maximise any future benefits. Both sides must keep their eyes on the prize of a deal, which is in everyone's best interests."
In a recent IoD survey, just over a fifth of company directors said their organisation was fully prepared for the end of the transition period, with almost a quarter not expecting to be ready by the end of the year.
The majority of respondents said that Covid-19 would exacerbate the impact of a no deal outcome.
958 respondents, conducted between 11-30 September 2020
Thinking with your organisation in mind, do you think the impact of coronavirus would affect the impact of a no-deal outcome between the UK and EU?
The impact of coronavirus will exacerbate/magnify a no-deal outcome
The impact of coronavirus will mitigate the effect of a no-deal outcome
No impact either way
Have you already undertaken, or plan to undertake, any of the following contingency measures?
Not planning to
Build up cash reserves
Relocate or open up operations in the EU for trade/customer/client servicing continuity
Secure additional warehousing space
Have a customs agent or other related intermediary
Obtain necessary licences/authorisations from EU/European authorities
Reorient/adjust my supply chain
Stopped sourcing/buying from the EU
Stopped selling to the EU
Our organisation has been cut out of EU or UK supply chains
Close the UK part of our business
Transfer staff to the EU
Transfer staff to the UK
Open new location/business in the UK
Which of the following statement best matches your organisation's preparedness for the end of the Brexit transition period on 31 December 2020?
More preparation to do - we will be prepared by the end of the year
More preparation to do - not sure if we will be prepared by the end of the year
Brexitwill not affect our organisation