Brexit uncertainty puts small businesses at risk, warns FSB
Tens of thousands of small businesses would be put at risk from a no-deal Brexit, the Federation of Small Businesses claimed today.
The business campaigner added that the lack of progress in negotiations between the UK and EU is increasing uncertainty among firms, forcing them to consider putting business decisions on hold and even cutting staff, it said.
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The warning comes as Prime Minister Theresa May faces growing criticism this week after failing to secure a special Brexit summit in November, despite offering to extend the UK’s transition period by another year.
Research carried out by the FSB revealed that more than a quarter of small businesses planning for a no-deal Brexit have spent £2,000 on preparations. In a no-deal scenario, 35 per cent of these business would postpone major decisions, while around a fifth would cut staff or expenditure.
The FSB has urged the government and the EU to reach a deal that does not put small firms at risk.
FSB national chairman Mike Cherry said: “The absence of a Brexit deal more than two years on from the EU referendum is nothing short of a political failure that brings us closer to a no-deal scenario that would be damaging and dangerous for our small firms.
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“With 162 days left until Brexit day, the time for political games is over – we need the UK government and EU to intensify negotiations to ensure that a pro-business deal focused on trade, talent and transition is secured.
“The alternative is a no-deal Brexit that will be catastrophic for our small businesses.”