Concerns have been raised that a significant proportion of European Union (EU) businesses that currently trade with the UK could ‘cut back’ orders from British suppliers if Brexit negotiations continue to progress at a slow pace.
The fears follow a recent survey carried out by the Chartered Institute of Procurement and Supply (CIPS), which found that a large number (63 per cent) of non-British EU businesses are now planning on moving part of their supply chain away from the UK.
This figure is up from just 44 per cent of firms who claimed to have such intentions when the same survey was carried out back in May.
The new data has caused a stir among numerous business and trade bodies, including the Confederation of British industry (CBI) – which has voiced concerns that attempts to agree a transitional deal are simply taking too long.
Only 17 months are left until the UK is expected to formally leave the EU and fears are quickly mounting surrounding the impact that slow negotiations appear to be having on business confidence.
Gerry Walsh, Group CEO at the CIPS, said: “The lack of clarity coming from both sides is already shaping the British economy of the future – and it does not fill businesses with confidence.
“British businesses simply cannot put their suppliers and customers on hold while the negotiators get their act together,” he said.
The CIPS added that around a fifth of UK firms were now struggling to secure contracts that extended beyond March 2019.