Almost two in three British firms will have implemented Brexit contingency plans by March if Britain and the rest of the European Union have not struck a transitional deal by then, a leading British employers group said. Ten percent of firms are already ready for the eventuality that Britain leaves the EU in 2019 with no deal with the bloc and resorts to World Trade Organization rules instead, the Confederation of British Industry said.
A further 24 percent would implement those plans by the end of January and 26 percent would do so by the end of March if no transition deal is reached by then to avoid an abrupt British exit from the EU in March 2019, the CBI said. Many financial services firms have already identified locations in Europe to open offices and reallocate staff because of a lack of clarity about Brexit.
Business groups have previously said a broad range of companies will start moving jobs and investment out of Britain if they do not get a transition deal soon. The CBI based its findings on a survey of 306 companies which are members of the CBI, conducted between October 2 and 16. Britain is seeking a transition deal with the EU but Brussels has said Prime Minister Theresa May and her government have not yet made enough concessions on the terms of Britain's exit from the bloc before talking about future ties.
Negotiations about Britain's relationship with the EU after Brexit are expected to begin in December. British finance minister Philip Hammond said last month that a transition deal needed to be struck by early 2018.
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