CBI: Fortune spent preparing for Brexit

The CBI has been speaking to businesses across the region to gauge their preparations for a no-deal departure from the EU, a scenario it says looks "increasingly likely" under Boris Johnson.

Deputy Director-General Josh Hardie said that although businesses had behaved "incredibly responsibly", there was "genuine concern" about the impact of a no-deal break.

"Businesses have spent a massive amount of money on preparation," he told the E&S.

"Whether that is in the manufacturing sector through stockpiling, or the services businesses, which could, for example, mean opening offices abroad.

"There is still work to be done, particularly for smaller businesses in the region, which often don't have the cash, or the time and capacity to stockpile."

He said that some firms had limited their preparations because they were wary of another Brexit delay, having been "marched up the hill" for the March 29 leave date that was delayed.

"They are cautious about doing it all again unnecessarily because the cost is so great," he said. "There is clearly still work to do to support small businesses.

"Even for those who prepare you can't mitigate all of the effects of no-deal. You can put the sandbags down, but you can't stop all of the flood water."

Mr Hardie said the uncertainty over Brexit had led to a "brain drain" at British universities, "high calibre" European researchers not taking jobs here because they are unsure what it means for them in the long term.

There have also been concerns this summer over whether less skilled workers who have gone away on holiday are going to come back, he added, particularly with the talk of freedom of movement ending in October.

The CBI has been heavily criticised by Brexiteers since the referendum, during which it warned that Brexit could cost the economy £100billion and around a million jobs.

Mr Hardie defended the body's stance, insisting that any projections were based on the UK having left the EU.

He said: "We did predict job losses and thankfully the jobs market has been incredibly resilient, but taking investment as an example, we said once we had left there would be an investment hit of between 15 and 26 per cent.

"We haven't left and there has already been a hit of 26 per cent. We said there would be a GDP hit in the region of 4-6 per cent, we are already above two per cent before we have even left.

"The idea that our predictions have been overblown simply doesn't stack up."

He added: "The risk of people saying 'well this is just more Project Fear' is that it dismisses the evidence. This is a very real situation and the UK needs to deal with it in the best way we can.

"If you are a business and you are having to relocate or lay people off, being told that there is nothing to be worried about with 'no-deal' misses the point.

"The carrion call from so many businesses is that this is not about overturning Brexit, it is 'get a deal, and get one as quickly as possible'. A deal is the only way of protecting jobs."