More than 70 British business groups representing over 7 million workers have made a last-ditch attempt to persuade politicians to get back on the dialogue table this week to strike a deal with the European Union.
The groups ranged from the CBI, TheCityUK and techUK to the National Farmers’ Union, British Retail Consortium and the Society of Motor Manufacturers and Traders and asked for the sides to find a compromise over trade terms, the report added.
“With compromise and tenacity, a deal can be done. Businesses call on leaders on both sides to find a route through”, the groups said in a statement.
Talks between Britain and the EU on a trade deal ended in recrimination last week, with both sides saying the other needed to compromise.
Prime Minister Boris Johnson said on Friday there was no point in continuing discussions and it was now time to prepare for an exit without a trade deal.
Helen Dickinson, chief executive of British Retail Consortium, said the public would be paying a heavy price if a zero-tariff agreement is not reached.
“There is nothing retailers can do to insulate consumers from the impact of £3 billion of new tariffs on food in our supermarkets,” Dickinson said in a separate statement.
“Moreover, new checks and red tape that will apply from 1st January will create additional disruption in the supply of many goods that come from or through the EU. Government must do what is necessary to agree a zero-tariff agreement, or else it will be the public that pay the price.”
Ian Wright, chief executive of Food and Drink Federation, commented that the prime minister’s statement signaled a move into “very dangerous territory.”
“In the event of a no-deal Brexit, shoppers will – literally – pay a heavy price. Imported food and drink from the EU will face eye-watering tariffs, averaging 18%, and kick-starting price rises,” Wright said.
“At the same time, border delays and disruption will bring further costs which will not be subsumed by industry. A no-deal outcome is bad for food and drink businesses, bad for food security, and bad for every household in Great Britain.”
Mike Cherry, chairman of Federation of Small Businesses, said the shops would not be able to handle a repeat of the no-deal rush witnessed earlier this year.
“The last time we were told to prepare for a no-deal scenario you saw a big uptick in stockpiling. There simply isn’t the cash or staff capacity to make that possible this time round, with a lot of employees still furloughed amid weak demand,” Cherry said.
“A lot of small businesses have shelled out thousands to make their premises safe at a time when they had little or no revenue coming in, only to be told to close.
“If the government wants firms to step up preparations for a new relationship with the EU, it needs to make doing so financially viable. At the moment, thousands of small businesses are running on near empty.”
Senior minister Michael Gove, Britain’s point man on the existing divorce agreement, struck a more conciliatory tone on Sunday, saying the door was still ajar to a deal if the bloc was willing to compromise.
Prime minister and Gove are set to meet business leaders this week as the government is launching a campaign urging businesses to step up preparations for Brexit.
In a statement accompanying the launch, Gove said: “Make no mistake, there are changes coming in just 75 days and time is running out for businesses to act.”
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