Hampshire Chamber of Commerce issues stark warning over no-deal Brexit

The letter to the Portsmouth North MP highlights the concerns of local businesses over the potential effect of leaving the EU without a deal in place. 

Maureen Frost, chief executive officer of Hampshire Chamber of Commerce, wrote: '˜Many businesses are already pausing investment, stockpiling goods and enacting contingency plans in the absence of clarity from Westminster. While many companies are actively preparing for a '˜no deal' scenario, there are also hundreds of thousands who have yet to start. Firms need clarity, precision and reassurance. The longer businesses wait to understand what the future UK-EU relationship will be, the bigger the hit to their near-term investment, expansion and confidence.'

Mrs Frost also said the lack of clarity over future jurisdiction and legislation '“ with 100 days to go until Article 50 takes effect '“ is already stifling the growth of local companies.

'˜Businesses need to know who they will be able to hire in future, how they will pay VAT, whether their goods will be stopped at borders, and whether the contracts they enter into will be enforceable. Even basic business planning for next year has become difficult, if not impossible,' she said.

A key concern for the Chamber is the fact many trans-national companies are already starting plans to take their business elsewhere and the inevitable detrimental affect this could have on employment and the local economy.

'˜Hampshire Chamber of Commerce have already met with a number of local businesses that have operations across Europe. Some of these businesses are already stockpiling in European warehouses and preparing to move production to other factories, with the inevitable effect that this will have on local people within your constituency. Research from the British Chambers of Commerce shows that in a no deal scenario many businesses would cut investment and recruitment, or move some of their operations elsewhere. Surveys have shown that businesses will be taking decisions that are right for them but may damage the UK economy,' explained Mrs Frost.

Within the letter, Mrs Frost extended an open invite to Ms Mordaunt to meet and discuss the situation with the Chamber.

The News contacted Ms Mordaunt, who currently serves in the Cabinet as Secretary of State for International Development, who reassured local businesses that there should soon be greater clarity.

'˜We are all working for a deal but if we don't get one then we must prepare for a no deal Brexit. That is the responsible thing to do,' she explained.

'˜The technical notices published over the summer and further ones published after Tuesday's Cabinet meeting give businesses the detail on what to prepare for and what they need to do, whichever sector they work in. We always knew that negotiations with the EU would go right to the wire and we do not yet know the terms on which we will leave. On all outcomes we are well prepared and that includes our communications to business. Above all else, business wants certainty '“ for that they will not have long to wait,' added Ms Mordaunt.