The majority of UK mid-sized businesses (MSBs) have begun preparations for the event of a no deal Brexit, according to new research from Grant Thornton’s International Business Report (IBR).
The research reveals that 74% of businesses with plans are factoring in a ‘no deal’ scenario – up from 56% six months ago.
Only around a fifth (22%) have done no planning, believe they don’t need to plan or are still unsure whether they need a plan, compared to nearly three-quarters (73%) of MSBs who had done no planning when surveyed six months earlier.
Of the majority (78%) who have made Brexit plans, many are still in the early stages of assessing and identifying the risks and opportunities Brexit poses (25% from 18% earlier); or have developed a contingency plan (36% from 1% earlier).
A significant number (17%) have already started to implement their contingency plans (from 9% earlier).
The research also finds that those businesses that have conducted some degree of planning are largely factoring-in an ultimate ‘No Deal’ scenario to their plans, whereby the UK and EU fail to reach an agreement and the UK defaults to trading on WTO terms.
Nearly three quarters (74%) include a ‘No Deal’ scenario in their plans, from an earlier 56% of the minority who had done some planning at the time.
Businesses were also asked about their confidence in the UK and EU agreeing an outcome that is ultimately positive to their business. Nearly half (45%) of businesses expressed a degree of confidence in a positive outcome (from 28% earlier).