23 October 2018
Increasing numbers of UK companies are drawing up contingency plans to move jobs and production abroad because of uncertainty surrounding Brexit, according to a survey by the Confederation of British Industry (CBI).
The survey of 101 large companies and 135 SMEs found the majority planned to begin implementing their contingency plans by December unless greater clarity emerged over a post-Brexit deal.
Publication of the survey came after a warning from Nicky Morgan, the Conservative MP who chairs the Commons Treasury Committee, who said the current impasse in negotiations was doing “tremendous damage” to banks and other financial services in the City of London.
She said that, aside from the short-term consequences of jobs and European hubs moving out of the UK, there were concerns about longer-term effects with international institutions looking farther afield when it came to major investments.
The CBI found that more than half of the businesses surveyed had drawn up contingency plans with 30 per cent of them planning to relocate production and services overseas, and 56 per cent of them preparing to adjust supply chains outside the UK.