IoD responds to PM’s Brexit statement warning businesses to prepare

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.