Conservative Party urged to avoid no-deal Brexit by CBI
A major UK business lobby group has warned Tory MPs to avoid hurting British companies by leaving the EU without a deal as hard Brexit candidates look to succeed Theresa May.
The Confederation of British Industry (CBI), a leading business lobby group, penned an open letter to all Conservative Party leadership candidates on Friday urging them to avoid a no-deal Brexit.
In the letter drafted by CBI Director-General Carolyn Fairbairn she explained that businesses both large and small are adamant that leaving the EU in an orderly manner is the ‘best way forward’.
‘The vast majority of firms can never be prepared for no-deal, particularly our SME members who cannot afford complex and costly contingency plans,’ Fairbairn added.
No-deal Brexit will do untold damage to British businesses
Bailing out of the EU without a deal would do ‘severe’ damage to British businesses and would cause ‘short-term disruption’ and long-term harm to their competitiveness, according to the CBI.
Speaking on BBC Radio 4’s Today Programme, the CBI chief said that a no-deal Brexit shouldn’t even be considered an option.
‘How can you be prepared for £20bn of increased customs costs? How can be you prepared for tariffs rising overnight? 150,000 businesses with no systems in place to do deal with this.
‘This is not a responsible strategy for a government to have,’ Fairbairn added.
No-deal Brexit must be Plan B
As it stands, there are 12 MPs vying to leader the Conservatives Party. Earlier this week on of the candidates, Esther McVey wrote in a column for the Daily Telegraph how Britain must ‘actively embrace leaving the EU without a deal.
Meanwhile, the frontrunner, Boris Johnson, made it clear that he intends renegotiate the terms of May’s withdrawal agreement with the EU, despite officials in Brussels repeatedly stating they have no interest in redrafting the Brexit deal already on the table.
‘I don't think any of the leadership candidates are advocating no deal as their plan A,’ Co-Founder of Economists for Brexit Gerard Lyons said in an interview with the BBC.
‘One has to have a plan B. No deal, whether we like it or not, has to be plan B’
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Be ready to act on ECB opportunities
Learn how the ECB’s monetary policy announcements affect interest rates and price stability ahead of its next meeting in 12 December 2024.
- How might the next meeting affect the markets?
- What are the key rate decisions to watch?
- Why is the Governing Council announcement important for traders?
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
