Businesses are desperate to avoid the economic damage of a no-deal Brexit, the deputy director-general of the CBI has told BusinessLive.
On a whistlestop Brexit tour of Britain, Josh Hardie said company bosses were simply unable to prepare for the full implications of a cliff edge exit from the EU, not to mention the long-term damage it would do to the º£½ÇÊÓÆµ’s reputation as a global business centre.
He said Brexit had become an issue of ideology at the expense of consensus, with smaller businesses in particular not braced for the full impact of an October 31 exit with no trade deal in place.
And he said there were “question marks” over whether Boris Johnson was backing British business during his showdown with the EU.
Mr Hardie joined CBI director general Dame Carolyn Fairbairn for a round table discussion with 20 business leaders at the Howes Percival law firm offices in Leicester on Tuesday night.
Following the discussion Mr Hardie said: “The primary question businesses will be asking is what does it do for their performance and for the economy.
“The answer is quite clear – no-deal in particular is not a sensible economic choice.
“If you look at it from a business perspective, that is more often than not the opinion you reach.
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“I sat down with 20 Leicester businesses from different sectors – retail, education, manufacturing, commercial services – and of those 20, none was in favour of a no-deal.”
Mr Hardie leads policy development, media and campaigning on behalf of the 190,000 businesses represented by the Confederation of British Industry.
Only last weekend leaked government documents warned the º£½ÇÊÓÆµ faced a three-month “meltdown” at its ports, a hard border with Ireland and food and medicine shortages if it leaves the EU without a deal.
Mr Hardie, who is visiting 11 regions this week, said: “It is pretty clear that the next few months will be concentrated on Brexit and there are a couple of things we need to be very clear of.
“One is preparation and how well-prepared businesses are – and how Boris Johnson’s Government can help them.
“The other is finding the insight on what a no-deal really means, so that politicians are basing their actions on evidence. There’s no question that Brexit is massively political, and there’s a huge risk that it becomes about ideology, not evidence.
“And what it comes down to is that a no-deal will be delivered to the community by businesses – because it’s businesses that will have to deal with the implications.
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“For instance, if a lorry driver turns up with the wrong paperwork at a port, or East Midlands Airport for that matter, every other business in the chain will be delayed.
“Crunch time is coming and it is the duty of politicians and the PM to really engage with the evidence.
“I think the work that Michael Gove [the minister responsible for no-deal planning] is starting to do with preparedness is looking at some of the facts on the ground.
“Unquestionably no-deal will be a serious issue.
“Businesses have put in billions to prepare, particularly larger businesses who have done all that they can.
“It gets more uncertain further down the line for smaller businesses that do not have the cash to stockpile or, for instance, open offshore offices in places like Ireland.
“While you can talk a good story of preparedness, there are genuine issues – if your supply chain breaks down it has a wider affect. Small businesses are the lifeblood of the economy.”
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He said “probably the most worrying thing” was the long-term impact on º£½ÇÊÓÆµ competitiveness.
“We have sold ourselves as a fantastic place to do business and a gateway to Europe.
“Questions are now being asked around the world and our competitors are now using that against us.
“Anyone who says this is project fear should look Britain’s businesspeople in the eyes and ask them about the planning they are doing and the fears for their employees.”
Asked if Boris Johnson was the right man for the job he said: “I think it cannot depend on one individual.
“It’s about the Prime Minister, Europe, the whole of Parliament – and everyone needs to be flexible to compromise.
“It is going to be a very, very tense situation and the more data you can put into the conversation, the better.”
And asked if Mr Johnson was backing business, he said: “I think there are question marks about that.
“In the past we have worked very well with Boris Johnson, when he was mayor of London, and in his heart I would probably say he was pro-business, but clearly Brexit has increased tensions.
“The majority of businesses do not agree with the Government position on Brexit.”