UK businesses’ Brexit frustration mounting with costs

Bloomberg

In September, Jaguar Land Rover (JLR) unveiled a new development facility near Coventry in central England, equipped with technologies like 3-D printing and dedicated to a futuristic vision dubbed “Destination Zero”: No emissions, accidents or congestion.
Early next month, Britain’s biggest auto manufacturer plans to add another goose egg: Zero production.
The maker of luxurious Jaguar sedans and rugged Range Rover SUVs is idling its UK factories for a week in order to guard against supply-chain disruption after the October 31 deadline for leaving the European Union.
The shutdown will go ahead whether the UK departs with a deal, crashes out without one or secures another delay.
After political chaos that left Prime Minister Boris Johnson’s withdrawal agreement in tatters, the answer to that question remains as elusive as it was more than three years ago when the country voted to leave. UK Plc is nowhere nearer the clarity it craves.
“We need tariff free, frictionless and seamless conditions to do business,” Ralf Speth, chief executive officer of JLR said.
While most business leaders want to avoid a no-deal departure, continued uncertainty is not much better. With the cliff edge looming, and the prospect of another one in three months if the EU grants Parliament’s request for a further delay, collateral damage is mounting.
“There will be a hangover into next year, regardless of what happens next,” said Suren Thiru, head of economics at the British Chambers of Commerce.
“The political inaction has had serious economic consequences.”
After Johnson secured an 11th-hour agreement with Brussels, industry groups including the Federation of Small Businesses and the British Retail Consortium had allowed themselves a glimmer of hope, urging politicians to move swiftly to end the state of limbo.
The weekend brought a reality check. In a rare sitting of the House of Commons, lawmakers denied Johnson the chance of putting his deal to the test by voting in favour of an amendment that basically required him to ask the EU for a delay.
The government confirmed it was triggering Operation Yellowhammer, its contingency plan to deal with the fallout from a chaotic departure from the EU. On Monday, Johnson was expected to ask the House of Commons to support his deal with the EU in a new “meaningful vote,” a test he was denied after lawmakers voted in favour of an amendment that sought more time for the agreement to be scrutinised.
Bonmarche, a womenswear retailer that has been struggling for years, went into administration, a British insolvency procedure, saying uncertainty over the departure from the EU delivered a knockout blow.