Brexit “remains the biggest challenge for businesses in 2019”, according to a leading accounting body.
In a new report, the Institute of Chartered Accountants in England and Wales (ICAEW) said uncertainty about the UK relationship with the European Union is the number one concern for British businesses.
The study, which was published ahead of the Prime Minister’s key Brexit vote, found that businesses will continue to have the same concerns for the next twelve months as they did in 2018.
This includes uncertainty surrounding the UK relationship with the EU and how it could affect them negatively (69 per cent of businesses versus 68 per cent in 2018) and lower UK economic growth (67 per cent versus 67 per cent).
Businesses are also concerned by the lack of clarity on longer-term business priorities from the UK Government, with almost six in 10 companies (58 per cent) citing this as a challenge.
A similar number (58 per cent) are also worried about rising UK inflation and the potential impact rising prices could have on their business.
While commentators had hoped that the ‘meaningful’ Brexit vote would result in a concrete deal being laid before businesses, an inconclusive outcome has only resulted in more uncertainty.
Commenting on the report, Michael Izza, ICAEW Chief Executive, said: “We know that the uncertainty around Brexit continues to impact our members and the businesses they advise. This is the busiest time of year for companies in terms of financial reporting and planning for the year ahead. As 29 March looms large, contingency planning is no longer a theoretical exercise, businesses can’t kick the can down the road.
“They have to make decisions now about jobs, stock levels and supply chains, incurring significant, and possibly unnecessary, cost. We need our parliamentarians to listen to the real concerns of business and find a way forward that avoids a disorderly exit from the EU and provides some much-needed clarity.”