Survey finds small businesses in our region fearful of no deal Brexit
Date published: 30 September 2019
The UK is due to leave the EU on 31st October
A third of businesses in our region say a no-deal Brexit would have a negative impact on them.
A survey from the Federation of Small Businesses found that only a tenth of firms in the north west say they will see a positive effect if the UK leaves the EU without an agreement.
The average cost of preparing for a no-deal Brexit for those companies has - so far - been around £2,000.
But that's risen to £3,000 for those who import and export goods.
The UK is due to leave the EU on 31 October, though the law requires Prime Minister Boris Johnson to ask the EU for an extension to the deadline if no deal is agreed before then.
The EU is not obliged to grant that extension, however.
Nationally, 39 per cent of small firms think a no-deal scenario will negatively impact them.
Only a fifth of those who are expecting that downturn have planned or prepared - with two thirds saying they don't think they are able to plan.
Some of the firms say they have been stockpiling supplies, while others report temporarily or permanently recuded profitability.
Manchester-based Chris Manka, North West Regional Chair for FSB, said: "As the risk of a chaotic no-deal Brexit on 31 October remains alive and kicking, it is worrying that many small firms have either not prepared or are finding that they can't prepare.
"Ongoing uncertainty is to blame for preparations hitting the skids with the picture still not clear as to how the UK will leave the EU on 31 October.
"Until we get clarity, small firms must prepare for the cliff edge where possible, and make preparations for a no-deal Brexit.
"Preparing for this outcome is coming at a high price though with small firms being hit by an unstable pound and having to shell out money on a potential outcome that has been highly disruptive, remains uncertain and is unwanted.
"Government must use what little time is left before 31 October to provide small firms with the support they need to navigate the unchartered and turbulent waters of a no-deal Brexit.
"Raising awareness is important, but not enough. The Government must also turn to meaningful financial support.
"This is desperately needed and would certainly provide a much needed shot in the arm for those firms that have already spent money preparing.
"For those firms that can't prepare, we need broader support including cutting VAT and National Insurance, uprating the £3,000 employment allowance and extending the two year 'retailers' business rates discount of 33 per cent, to a wider range of smaller businesses."
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