Business leaders express despair at "deepening" Brexit crisis

Business leaders have expressed despair at the continued Brexit uncertainty, accusing politicians of creating a “deepening crisis” as MPs this afternoon chose to vote down Theresa May's EU Withdrawal Agreement for the third time of asking.

Despite the Prime Minister offering to resign if her deal was passed, convincing a number of Brexiters, including Boris Johnson and Jacob Rees-Mogg to vote for the deal, it wasn't enough to convince the House of Commons and it was defeated for a third time, albeit by a slimmer margin that on the prior two occasions.

Leaders of business groups said the vote made the "nightmare scenario" of no deal even more likely on the new deadline date of 12 April.

Stephen Phipson, chief executive of Make UK, the manufacturers’ organisation, said: “Business is devastated that after two years of negotiations, months of increasing uncertainty and weeks of building frustration, after three attempts the withdrawal deal has not been agreed by the House of Commons.

“This now makes the nightmare of a ‘no-deal’ scenario more likely than ever. This would be a disaster for the UK economy as a whole and for the 2.7m manufacturing jobs around the UK.

“Every day, companies are losing contracts with investment falling and companies voting with their feet and walking away from Britain as a place to do business.

“Our global reputation was already tarnished, we end the week with it in tatters.”

Mike Cherry, chairman of the Federation of Small Businesses, said: “On the day that we were supposed to be leaving the European Union, all we have is yet another political failure to chalk up.

“Responsibility for this deepening political crisis lies squarely at the feet of politicians who have clearly stopped listening to the business community.

“Our small businesses have been crying out about the significant damage that uncertainty is causing them. These cries have been drowned out by those seeking to play political games.

“Planning has stalled, investment is handcuffed and growth has flatlined. The only question now is what happens next? Small businesses’ message is simple, stop playing politics, come together and get on with delivering a pro-business deal that secures a transition period, guarantees as much frictionless trade as possible and most importantly, avoids a disastrous no-deal Brexit.

“Our small firms are sick and tired of politicians debating and dithering over Brexit.”

Helen Dickinson, chief executive of the British Retail Consortium, said: “There are still options open to MPs and they must get behind one of them. The country needs certainty and a legal guarantee against the chaos that will inevitably result from no deal.

“Businesses are paying the price of the political uncertainty. Time and money is being spent, irrecoverably, preparing for a no-deal scenario that most people, businesses and politicians do not want to see.”

Josh Hardie, deputy director general of the CBI, said: “All eyes are now on Monday to discover what Parliament is for. The UK’s reputation, people’s jobs and livelihoods are at stake.

“No deal is two weeks away. This winner takes all approach means everyone loses. Indicative votes must deliver. Only MPs can end this nightmare for businesses.”

Edwin Morgan, interim director general of the Institute of Directors, said: “The Brexit merry-go-round continues to spin, but the fun stopped a long time ago.

“We are running out of words to express how sick business leaders are of being stuck in this spirit-sapping limbo. The inability to make any decision is doing lasting damage to enterprise.”