Businesses in Liverpool have hit out at the government and demanded a stop to the current Brexit impasse, saying it's affecting cash flow and damaging potential trade deals.
The city's International Trade Club, including representatives from the biggest businesses trading overseas, said political uncertainty is creating "significant challenges".
The club, whose members are all members of the Liverpool Chamber of Commerce, said buyers from abroad are cautious about the prospect of a no-deal, which would see the UK crash out on "World Trade Organisation" terms.
At their quarterly meeting this week, the group expressed frustration there is still no obvious direction for the terms on which the UK will leave the European Union. They said that, despite plenty of post-Brexit planning by companies, uncertainty was affecting cash flow for businesses now as well as in the future.
Paul Cherpeau, chief executive of the Liverpool Chamber of Commerce, said: “It is evident that our members need clear decisions to come from Government about our future trading arrangements so they can get on with business and negotiate lasting deals. Whatever those future terms are, it is clarity that will help them most to prepare and continue to trade successfully overseas post-Brexit.”
At present, the UK is set to leave the EU on October 31 with or without a deal. But with a Tory leadership contest underway, it's still not known whether there will be a withdrawal agreement, or even a subsequent General Election or second EU referendum.
The businesses who met this week want the government to provide a "clear roadmap for Brexit", to restore confidence in the export market.
Although there are companies around the globe looking to invest in Liverpool and its businesses, the deadlock in Westminster is leading to delays in deals being completed, club members said.
Chairman of the International Trade Club, Denis Sowler of Tithebarn Ltd, said: “Since the end of March when we were due to leave the EU, businesses have been left frustrated at the lack of direction from Government on this crucial issue.
"It is no surprise that the inactivity has led our trading partners to become tentative when they know the terms may alter significantly months from now.”
Chamber members get regular access to expert briefings, and the Trade Club round table also included a keynote speech from John Griffiths, International Trade Development liaison officer at HMRC.
He outlined what companies may need to do in the event of a day one ‘no-deal’ Brexit.
This included logistics, easements and special procedures to maintain future trading arrangements with countries in the EU and the rest of the world.
Following the HMRC briefing, Liverpool Chamber member Richard Hogg, tax director from accountancy and business advisory firm BDO, said: “Although the transitional and simplified procedures that HMRC has already announced on imports in the event of a no-deal Brexit scenario provide some clarity for businesses, it is the political uncertainty around our future relationship with the EU and other trading partners that is the major concern.
"Until there’s clarity on this point, business confidence and investment will continue to be affected.”
The meeting was held at Clarke Energy in Knowsley, a specialist in the engineering, installation and maintenance of engine-based power plants with operations in 25 countries across the world.
Alex Marshall, group marketing and compliance director and Northern Powerhouse Export Champion said:“We were pleased to host Liverpool Chamber’s International Trade Club which is quickly becoming a key forum for companies in the city region who are trading overseas.
"It’s hugely beneficial to meet with peers and discuss the issues we’re facing across all sectors and to be briefed by experts in Government.”
