North West small firms fearing no-deal Brexit

Small firms are concerned about a no-deal Brexit
Small firms are concerned about a no-deal Brexit

Around a third of small firms in the North West believe a no-deal scenario on October 31 will negatively impact them, according to new research from the Federation of Small Businesses.

Preparations for a no-deal Brexit has come with a high price with the average cost for the businesses that have prepared, coming in at around £2,000.

That average cost rises to £3,000 for smaller businesses that import and export. Just under one third of prepared small businesses have stockpiled ahead of October 31 while 34 per cent report temporarily or permanently reduced profitability.

Just under half of these firms, along with those that plan to prepare for no-deal over the next few weeks, think that the volatility in Sterling has negatively impacted their business. Almost half that believe they will be negatively impacted by a no-deal scenario would welcome some form of financial support.

In response to the findings, FSB has renewed calls for the provision of financial assistance such as vouchers worth up to £3,000 to assist with preparing for a potential no-deal scenario, including supporting small firms in reaching new global markets.

North West Regional Chair for FSB, said: “As the risk of a chaotic no-deal Brexit on October 31 remains alive and kicking, it is worrying that many small firms have either not prepared or are finding that they can’t prepare.

“Raising awareness is important, but not enough. The Government must also turn to meaningful financial support.”