Brexit: MPs must listen to businesses to avoid no-deal ‘wrecking ball’, CBI president says

A compromise would not be perfect, CBI chief John Allan is expected to say, but 'most importantly, it avoids the wrecking ball that would be a no-deal departure.'

Politicians should be talking to businesses in their constituencies about the consequences of Brexit in order to reach a deal that will minimise damage to the economy, according to the president of the Confederation of British Industry.

The prime minister was plunged into a leadership crisis last week after unveiling a draft Brexit agreement, however, business leaders urged politicians to back Theresa May’s plan to avoid the UK crashing out of the EU with no deal.

The CBI’s John Allan will use his speech at the group’s annual conference to call on MPs to highlight the importance of compromising in order to “open a route to a long-term trade arrangement and (unlock) transition – the very least that companies need to prepare for Brexit”.

A compromise would not be perfect, Mr Allan is expected to say, but “most importantly, it avoids the wrecking ball that would be a no-deal departure.”

Mr Allan will also highlight a number of examples of businesses losing out on investment due to Brexit uncertainty.

““In the past few days alone, I’ve heard of a life sciences firm in the North West that has cut almost all investment in the UK – putting it instead in Germany and China,” he is expected to say.

“I’ve heard a Northern Irish tech firm that has stopped winning contracts because their aerospace customers are worried about Brexit. And a construction firm says it now costs an extra £20,000 to build a house, due to a shortage of materials and labour since Brexit.

“These stories are repeated across the country. 80 per cent of firms have already cut or postponed investment because of the risk of a no-deal exit.”

The CBI conference begins at 10am on Monday 19th November, with the PM and various business figures scheduled to address attendees.