The Government’s recent response to a report requested by the Treasury Select Committee of the House of Commons has been questioned by the Committee’s Chair.
The 10-page report has outlined the Committee’s transitional arrangement recommendations alongside the Government’s corresponding responses – a large proportion of which focus on the implementation and transition period, which is still yet to be fully negotiated.
However, the responses provided have been criticised heavily by Conservative MP, former minister and the Committee’s Chair, Nicky Morgan, who has indicated that businesses are struggling with the uncertainty of the process.
The response from the Government stated: “As with any regulatory change businesses are advised to understand how these may affect their business and explore potential impacts. The Government will also continue its already-extensive engagement with businesses across the UK.”
Reflecting on this advice, Morgan said: “In this environment of pervasive uncertainty, it is extraordinary that the Government – in its response to the committee’s report – is advising businesses to ‘understand’ and ‘explore potential impacts’ of ‘regulatory change’ arising from Brexit.
“Firms can hardly begin to understand change until they know what it consists of. Brexit uncertainty for businesses still looms large.”
Based upon the Government’s response, Morgan said that she believes companies have been left with little choice but to prepare for the worst possible outcome.
“Businesses are now crying out for the certainty of having a transition period secured,” she added.
With the UK set to leave the EU, there are growing concerns that many SMEs may be holding off on big investments due to the uncertainty and fears that another recession or period of slow growth could be just around the corner. 
If uncertainty is affecting your ability to plan then it may be time to see how Grunberg & Co’s Brexit Professionals can help. Why not try our risk analysis tool.