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Businesses cannot be protected from no-deal Brexit, says CBI

"Stockpiling, relocating operations and supply chains out of the º£½ÇÊÓÆµ are draining funds which could be used for increasing wages and investment."

(Image: PA)

Businesses "cannot be protected" from the worst impacts of a no-deal Brexit, the deputy director general of the Confederation of British Industry warned.

Josh Hardie hit out at the "political brinkmanship" in Westminster as Boris Johnson's Conservatives gathered for a party conference set to be dominated by Brexit and preparations for the expected election.

His comments came after the Government's no-deal planning chief Michael Gove claimed that the automotive and retail sectors were ready for the º£½ÇÊÓÆµ to leave without an agreement with Brussels - claims their industry bodies rejected.

CBI deputy director-general Mr Hardie warned that a no-deal exit would leave the º£½ÇÊÓÆµ "mired in a swamp" facing protracted negotiations with Brussels on trading arrangements.

He told the PA news agency: "Businesses are beyond disillusioned with the political brinkmanship and the looming risk of no deal.

"There can be no room for complacency in no deal planning - which goes for government and business alike.

"But while firms can be prepared, they cannot be protected against the worst effects a no deal exit would bring.

"Preparations are already having an effect.