As far as businesses are concerned, the spectre of Brexit has proven to be a huge stumbling block and the uncertainty over the past few months has made life even more difficult. However, Prime Minister Theresa May’s failure to push through her deal at the Parliament yesterday has left business groups in the United Kingdom upset and exasperated. Now that the deal has been rejected again by the Members of Parliament, there is a very real possibility of the UK exiting the European Union (EU) without a deal, and if that happens then, businesses across the country are going to be affected adversely.
The finance industry is one of the biggest industries in the UK and City UK, the body that represents it, has stated that the government should recognise that a ‘no deal’ Brexit is going to be a disaster of ‘historic proportions’. Business groups at large have urged the government to not consider a no deal Brexit as even an option.
The Confederation of British Industry (CBI), which is the biggest business group lobby in the country, has urged the government to keep the extension period for Brexit as short as possible. Carolyn Fairbairn, who is the Director General of the CBI has stated that the extension period “should be as short as realistically possible and backed by a clear plan”. She went on to say, “It’s time for Parliament to stop this circus.” The latter comment is a clear dig at MPs who have consistently voted against British PM Theresa May’s Brexit deal.
However, more harsh words were in store for the government, which has been found wanting when it comes to a clear plan on managing the country’s exit from the EU. Businesses have prepared for Brexit for around two years now, and lots of money has been spent to ensure that their operations run smoothly after Brexit. However, the uncertainty has completely altered their plans and infused uncertainty of epic proportions. The manufacturing groups are going to be in great trouble in case of a ‘no deal’ Brexit since the import of materials might come to a standstill, and the head of the manufacturers’ lobby group Make UK, Stephen Phipson lashed out at the government. “It is now essential that Parliament brings the curtain down on this farce and removes the risk of no deal. That outcome would be disastrous for the UK manufacturing, jeopardising many thousands of jobs in every constituency in the land.”