FTSE 100 chairs predict further Brexit extension

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FTSE 100 chairs predict further Brexit extension
FRANKFURT AM MAIN, GERMANY - OCTOBER 20: Guests stand at the rooftop of a shopping mall and look at the skyline and the finance district on October 20, 2018 in Frankfurt, Germany. Skyrocketing costs for housing have become a major issue in cities across Germany, with local government scrambling to find policy solutions. Frankfurt in particular is already attracting wealthy newcomers as the city becomes an alternative for companies in the financial sphere relocating from Brexit-afflicted London. In other cities, especially Berlin, foreign investors, including from China, are parking their money in luxury apartment purchases. (Photo by Thomas Lohnes/Getty Images)

A majority of the leaders of the UK’s biggest companies think that Brexit will be delayed past Halloween, according to a new survey of the chairs of FTSE 100 firms.

Read more: Rudd: I won’t lie down in front of the bulldozers to stop a no-deal Brexit

Meanwhile only 13 per cent of blue-chip bosses would like to see former foreign secretary Boris Johnson become prime minister, according to management consultancy Korn Ferry’s latest survey.

Britain is due to leave the European Union on 31 October after Prime Minister Theresa May secured an extension past the original date of 29 March.

While some say another extension is likely, Johnson, the frontrunner to become the next PM, has said he will take Britain out of the bloc by 31 October “come what may” should he be chosen by the Tory membership.

Korn Ferry’s latest survey asked 22 FTSE 100 chairs, who represent companies comprising 36 per cent of the total market capitalisation of the group, to get a flavour of bosses’ views on major issues.

Of these, 65 per cent believe there will be a further extension to Brexit negotiations. Just 17 per cent foresee a deal being approved by parliament, while 12 per cent think Britain will crash out without a deal.

Both contenders for the Conservative crown, Johnson and current foreign secretary Jeremy Hunt, have said they would be willing to exit the EU without a deal. The business community has said this would be disastrous for the economy.

Johnson has centred his campaign on his promise to deliver Brexit on 31 October. He has said the Conservative party will be in deep trouble if it fails to take Britain out of the bloc.

Dominic Schofield, managing partner of Korn Ferry’s Board Practice, said: “Despite the tough rhetoric that has characterised Johnson’s leadership campaign, UK chairmen are unconvinced that there will be “no second chances”.”

One unnamed FTSE 100 chairman said: “The Labour party will get behind a second referendum giving overwhelming parliamentary support for one.” 

“This will please the EU and they will agree to a further extension to facilitate a second vote which I anticipate will be to remain.”

Read more: British businesses split on Brexit ‘brain drain’ in tech industry

The winner of the Conservative leadership contest will be known by 23 July.