Call to prepare for 'no-deal' Brexit

Cumbria’s Chamber of Commerce issued the advice after MPs resoundingly rejected the Government’s Withdrawal Agreement, the result of two years of negotiations with European Union leaders.

After 432 MPs voted against the deal on Tuesday night, the leader of the business group said he was worried the Government would fail to agree any alternative.

The UK is set to leave the EU without a deal automatically on March 29 if nothing is agreed.

In the south of Cumbria Liberal Democrat MP Tim Farron voted against the agreement alongside independent Furness MP John Woodcock.

Copeland Conservative MP Trudy Harrison voted in support of the deal.

Rob Johnston, chief executive of Cumbria Chamber of Commerce, said: “The markets’ reaction to Tuesday’s vote suggests they think it has made a no-deal Brexit less likely.

“But it’s still the default option.

“It’s what happens on March 29th unless Parliament and the EU agree an alternative deal or agree to delay Brexit by extending Article 50.

“The majority against Theresa May’s withdrawal agreement was an unholy alliance of Brexiteers who want a harder Brexit and Remainers who want a softer Brexit or no Brexit.

“There might not be a majority for anything in Parliament so we have to take the possibility of no-deal seriously.

“Businesses have been delaying Brexit preparations until there was greater clarity on what Brexit will look like.

“We still don’t have answers to basic questions such as ‘What customs procedures will I face?’ or ‘Who can I hire and where from?’ But businesses can’t delay any longer.”

Mr Johnston added: “It’s prudent to plan for the most disruptive scenario, which is leaving on World Trade Organisation terms without a withdrawal agreement and a transition period.

“That means businesses spending money on contingency plans that could be better spent investing for growth and to boost productivity, but at this late stage there is no option.”

The business leader said the Brexit “uncertainty” was affecting businesses and urged politicians to come up with a plan.

He said: “We need a resolution to this.

"We can’t allow the purgatory of Brexit uncertainty to continue indefinitely.

“Every day that goes by businesses are holding off on investment and hiring staff.”

The Barrow and Furness MP John Woodcock voted against the deal saying: “My main concern is how badly Brexit under this deal would hurt the economy.

“Consumers will be hard hit as it becomes more difficult to import from abroad and the cost are loaded on to local businesses.

“Our standards of living will fall, as will our quality of life, and the job losses we have already seen will be compounded by even more still.”

Tim Farron, the MP for Westmorland and Lonsdale, said the deal would make people “poorer, less safe and with less of a say over our laws”.

Trudy Harrison voted for the deal because it ended free movement of people and control from the European Court of Justice, she said.

The Chamber encouraged businesses to have their say on Brexit by a completing a survey on its website - www.cumbriachamber.co.uk - which features advice on how to prepare for “no deal”.