A new survey from Chartered Accountants Ireland London Society published today shows that almost half of business leaders have little or no plans in place for a no deal Brexit.
Despite 68% of Chartered Accountants Ireland members in Great Britain saying that Brexit will have a negative impact, only 24% of those respondents said their businesses are fully ready to meet the challenges that Brexit might bring. Reflecting the current uncertainty, almost half (41%) of businesses surveyed have made little or no plans to prepare for Brexit.
Among the key findings from a new Brexit Sentiment Survey of Chartered Accountants Ireland members working in Britain were: -
76% said that the UK and EU were unlikely to reach a deal by 29 March 2019
41% had little or no plans for a no deal Brexit,
35% had some plans;
24% are fully prepared.
68% said that Brexit would have a negative impact on their business,
6% said Brexit would have a positive effect
83% said the voice of business was not being heard in the Brexit negotiations
Supply chain disruption was the biggest concern, followed by customs duties and then customs administration
The survey was also carried out among members of Chartered Accountants Ireland on the island of Ireland with very similar trends reported.
Speaking about the study, Gerard Nicholas, Chairman, Chartered Accountants Ireland London Society, said:
“These findings reaffirm that some level of certainty is urgently needed among the business community. Without assurances of the future trading landscape, businesses are finding it difficult to put concrete plans in place to prepare for Brexit and many have adopted a wait and see approach.”
According to the survey, Chartered Accountants rated supply chain disruption as their biggest concern followed by customs administration and thirdly customs duties.
“The businesses we have engaged with and spoken to over the last two years have largely been more concerned about supply chain disruption and customs paperwork than the costs of any potential customs duties. Many dealing with consumer foodstuffs with a short shelf life, for example, are unclear about how customs checks will take place and say that any delays in clearing customs could be detrimental to their businesses.” said Mr Keegan.
The survey also showed that over three-quarters of Chartered Accountants Ireland members in Great Britain do not believe a Brexit agreement will be reached by 29 March.
“It is hard to believe that with less than three weeks to go until 29 March, the UK and EU are still without an agreement. Chartered Accountants Ireland has been urging businesses to examine their supply chains, look at their cash flow and update their knowledge on customs in order to be ready to cope with the prospect of a no deal Brexit.”
Source: Chartered Accountants Ireland