Are the UK and EU ready for a hard Brexit?

[Lillian McKenna]

[Peter Kimani]

According to the Confederation of British Industry (CBI), both the UK and EU are not adequately prepared for the looming prospect of a no-deal Brexit given the fast-approaching 31st October deadline. The industry lobby welcomed the preparations being made by the British Government given Michael Gove’s admission that a no-deal scenario was now a real possibility, but warned that given the uniqueness of such an outcome, there are some unavoidable risks. The CBI released a report titled “What Comes Next? The Business Analysis of No Deal Preparations” after conducting thousands of interviews with UK businesses and analysing the expected efficiency of their contingency plans in mitigating the risks associated with a hard Brexit. The report indicates that about 24 business sectors out of a total of 27 would be negatively affected by a no-deal Brexit despite the existing contingency plans. The report notes that many large businesses had well-thought-out contingency plans, but smaller firms were less prepared. Josh Hardie, the CBI's deputy director-general, confirmed: "A deal is absolutely essential if we're to manage the economy in the best way that we can."