MANCHESTER, ENGLAND - Prime Minister Boris
Johnson needs to make his priority getting a Brexit deal to
protect the economy, rather than wooing voters with a political
promises, business groups attending the Conservative Party
conference said.
Less than a month until Britain is due to leave the European
Union, Johnson's Conservative Party conference in Manchester is
festooned with a three word slogan that encapsulates his
approach to leaving the European Union: "Get Brexit Done".
He wants a deal with the European Union to smooth Britain's
exit from the bloc next month, but if he can't get one in time
he wants to leave on Oct. 31 anyway - a prospect that has the
many in the business community on edge.
"The message from business to government is clear: get a
Brexit deal done," said Claire Walker, Co-Executive Director of
the British Chambers of Commerce.
The traditionally centre-right Conservative Party has long
used its annual gathering of members, sponsors and donors to
promote itself as the party of business, a pledge to set it
apart from the leftist opposition Labour Party.
But this year in Manchester, with a party and electorate
deeply split over Brexit, and an early election on the horizon,
that focus has shifted onto a promise to get out of the EU,
prioritising an end to over three years of political crisis.
That is at odds with what businesses represented by major
lobbying groups want. They say the possibility of leaving the EU
without a deal is casting a long shadow over the economy,
deterring investment and driving activity overseas.
"Businesses are adamant that a Brexit deal remains their top
priority. The economic fall-out from a no deal scenario would be
severe," said Matthew Fell, Chief UK policy director at the
Confederation of British Industry.
Pessimism in British businesses rose in the three months to
September to the highest level in almost eight years, a survey
on Sunday showed.
Britain has been this close to Brexit before.
Ahead of an earlier exit deadline in March, subsequently
missed because parliament refused to sanction a deal negotiated
by Johnson's predecessor, firms racked up costs stockpiling
components in case of disruption to supply line.
This time round, the same thing is happening, according to
recent surveys.
Even though Johnson has placed more emphasis on planning and
preparation for a no deal, spending millions on information
campaigns aimed at businesses large and small, firms say they
don't have the details they need.
"We’re already seeing the economic impact of the relentless
uncertainty in the form of sluggish growth and anaemic business
investment – unsurprising given firms have no clarity on what
conditions they’ll face in a mere matter of weeks," Walker said.
"The focus of Westminster should be on the practicalities
not the politics."
Still, there is a cost.
"More businesses are prepared than before, but that does not
mean that they are protected from a no deal outcome, especially
small firms. And the actions being taken are not positives for
the economy," said Fell.
"Firms have been spending billions of pounds on contingency
plans and shifting supply chains, which could be spent on new
investments, innovation and jobs."