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We're 25 days from exit day, there's no sign of a plan that will deliver a deal, and businesses... not super happy.
The @CBItweets Brexit and @CBI_Economics teams were in Edinburgh, Newcastle, Nottingham and Leeds last week talking to companies and... some observations (1/x)
The @CBItweets Brexit and @CBI_Economics teams were in Edinburgh, Newcastle, Nottingham and Leeds last week talking to companies and... some observations (1/x)
1⃣ There's no sign of contingency plans abating or slowing down, even if Article 50 is extended.
We hear of stockpiling all over the place. £8million spent by one firm on parts of heavy machinery, companies in construction, retail, even housing associations (2/x)
We hear of stockpiling all over the place. £8million spent by one firm on parts of heavy machinery, companies in construction, retail, even housing associations (2/x)
Not just stockpiling though. Logistics firms adjusting to ensure duties can be paid more easily by clients, tech and professional services firms doing what they can to advise clients, reserving cash etc.
Lots of money being spent in, ultimately, not super productive ways (3/x)
Lots of money being spent in, ultimately, not super productive ways (3/x)
2⃣ What's changing more recently is the fact no deal is happening. Right now. It's impacts are being felt by people today.
- The agency workers only being offered 1 month contracts instead of 6 month contracts
- The leather company who's lost one of their biggest supplier (4/x)
- The agency workers only being offered 1 month contracts instead of 6 month contracts
- The leather company who's lost one of their biggest supplier (4/x)
- The energy biz seeing clients waiting for the £ to crash before spending money, and having to lay people off due to the lack of orders
- The Universities redeploying EU staff to bases in 🇩🇪 🇪🇸 🇳🇱
- The drinks firm that's stopped exporting to the EU until there's certainty (5/x)
- The Universities redeploying EU staff to bases in 🇩🇪 🇪🇸 🇳🇱
- The drinks firm that's stopped exporting to the EU until there's certainty (5/x)
If Article 50's extended, the wait for investment and contracts will just go on. And those firms that have planned for a March no deal will have to extend contingency costs through to July.
The message is clear that's still better than no deal, but every day has real cost (6/x)
The message is clear that's still better than no deal, but every day has real cost (6/x)
3⃣ There's the start of the realisation that any A50 extension eats into FTA negotiating time and transition.
For agri-firms on a 18mo production cycle, cosmetics firms on a 4 year product cycle, financial services firms facing hugely complex negotiation, that's a new worry (7/8)
For agri-firms on a 18mo production cycle, cosmetics firms on a 4 year product cycle, financial services firms facing hugely complex negotiation, that's a new worry (7/8)
So we're running out of time and the costs to jobs and our economy are worsening day by day.
It's the same message as ever to politicians. Sort yourselves out. Compromise. Expect to hear the same in Belfast, Lisburn, Bridgend, Bury St Edmunds and St Helens this week (8/8)
It's the same message as ever to politicians. Sort yourselves out. Compromise. Expect to hear the same in Belfast, Lisburn, Bridgend, Bury St Edmunds and St Helens this week (8/8)
