Surveys by Deloitte and the Institute of Chartered Accountants in England and Wales have found UK businesses and foreign companies’ local subsidiaries are taking less risk because of Brexit. The British government’s failure to agree a transition deal with the EU has firms fearful that significant customs delays and other checks will affect supply and result in shortages of food and other important items. Brexit is also expected to lead to higher prices for consumers as they face increased costs from import duties on goods such as cars, which could be passed onto consumers. US trade protectionism and weak domestic demand are also causing concern.
Surveys by Deloitte and the Institute of Chartered Accountants in England and Wales have found UK businesses and foreign companies’ local subsidiaries are taking less risk because of Brexit. The British government’s failure to agree a transition deal with the EU has firms fearful that significant customs delays and other checks will affect supply and result in shortages of food and other important items. Deloitte said appetite for risk is currently “at recessionary levels”, with companies prioritising controlling costs. US trade protectionism and weak domestic demand are also causing concern.