The British Government has issued its reports on the implications for business of a no deal Brexit and it does not paint a pretty picture:
- There are still more than 30 international trade deals to be concluded
- Research shows preparedness is particularly low in SME’s
- To date there have only been 40,000 Economic Operator Registration and Identification (EORI) out of an estimated 240,00 EU only trading businesses
- No deal would have an economic impact of up to -9% over a 15 year period!
- There will be restrictions and delays at EU borders for freight and passengers leading to a potential impact on “just in time” operations and food imports
- Admin burden on business could amount to up to £16bn per annum in the absence of a deal
- There would be tariff increases including 70% on beef, 45% on lamb and 10% on vehicles
The message in this report (which you can read here) is clear: businesses must take action to prepare for the impact of a non deal Brexit. However it is crucial that the government and Parliament comes together to prevent the UK from this scenario from happening.
Talking to our clients, only a few are taking proactive steps to prepare for a no-deal. What is your business doing to prepare?