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Home / World

Brexit stall spooks UK firms

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21 Oct, 2018 04:00 PM2 mins to read

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A protest flag at the People's Vote march in London. Photo / AP

A protest flag at the People's Vote march in London. Photo / AP

The vast majority of British firms are poised to implement their Brexit contingency plans by Christmas if there isn't greater clarity over the country's exit from the European Union, a leading business lobby group warned.

The Confederation of British Industry said these could include cutting jobs, adjusting supply chains outside the UK, stockpiling goods, and relocating production and services overseas.

The warning comes amid growing fears that Britain may crash out of the EU in March without a deal on the future relationship. That could see tariffs placed on British exports, border checks reinstalled, and restrictions imposed on travellers and workers - a potentially toxic combination for businesses.

"The situation is now urgent," said Carolyn Fairbairn, the CBI's director-general. "The speed of negotiations is being outpaced by the reality firms are facing on the ground."

The comments come as a major protest was held in London calling for a new Brexit referendum. An estimated 670,000 people turned up for the event. Activists want a fresh referendum in which Britons can have a say on the final Brexit deal.

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Among the protesters was actor Andy Serkis, who said he believes there should be a second referendum "now that people are more informed" compared to 2016, when Britons voted to pull out of the EU. He says "the will of the people doesn't have to stand still, it's not an immovable thing that is fixed".

In other developments:

●A former head of the UK's overseas intelligence service said Brexit could leave Britain more vulnerable to attacks like the Skripal poisoning. "I don't believe Russia would have used a nerve agent on the streets of an American or German city" because the consequences would be too great, John Sawers, who led MI6 between 2009 and 2014, said.

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● The number of people in Britain seeking to restore their German citizenship has jumped, with 1667 people applying to reclaim the status they or their ancestors were stripped of by the Nazis.

Discussions between the two sides have hit an impasse largely over how to maintain an open border between Ireland and Northern Ireland.

A summit of EU leaders last week failed to yield a breakthrough and another gathering in November was cancelled. December is now the next scheduled summit. Even if a deal is forged, there are doubts over British Prime Minister Theresa May' ability to secure the necessary majority in Parliament.

- AP

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