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'UK businesses are in Brexit denial'

Laura  Barnes
'UK businesses are in Brexit denial'

Last week marked the one-year anniversary of the UK’s decision to leave the European Union.

While the BRC said the government’s plans were “promising for retailers”, PCA Predict unveiled a study that showed just how much various Brexit-related events over the past 12 months have affected UK consumers’ online spending habits.

Now, KPMG has commented on the UK’s Brexit progress so far.

“A year ago the referendum result took the business community by surprise, with most unprepared for Brexit and the foreign exchange impact. Today most global businesses, particularly those in financial services, are busy putting in place measures to insulate them from the most significant Brexit risks,” said Karen Briggs, Head of Brexit at KPMG.
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“But this is not a universal pattern and there is definitely a band of firms that are either in denial or yet to fully engage at board level. These organisations tend to argue that there is too much uncertainty and complexity or, post General Election, they have unrealistic views on the Brexit outcome.

“With negotiations underway and major change often requiring extensive lead times, shrinking from these decisions is becoming an increasingly risky and untenable strategy.

“These businesses need to urgently get on with the necessary planning. There is little reason to believe that the current levels of uncertainty and volatility around Brexit are going to change. If this is the new normal, businesses need to take a more proactive approach to shaping their own destiny. The government has a massive agenda to land and the nature of the deal means the current climate isn’t going to get a lot easier.”

Tags: eu , kpmg , brexit , eu referendum

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