Coming out of the EU with no deal could result in a “flurry of profit warnings” from publicly listed companies in November, MPs have been warned.
The Institute for Chartered Accountants for England and Wales (ICAEW) told MP’s at the brexit select committee, that a no deal could have a “systemic” impact on the confidence in the British economy according to The Guardian.
Martin Manuzi, the regional director for Europe of the ICAEW said: “I would like to have this on record, it is likely we may well see after 1 November a flurry of profit warnings from companies finding themselves in completely unprecedented circumstances.
“Things that we ask ourselves? What is the cumulative effect on market confidence of the issuing of such profit warnings, and a systemic lack of confidence can have massive macroeconomic impacts.”
Giles Derrington, the head of Brexit policy at techUK added: “UK might be the best place to invest, but it is no longer the only place to invest, in an industry that moves very, very quickly, it’s then very hard to catch up. The worry is that gap sufficiently closing that we are no longer the obvious global hub outside America.”
Derrington also explained that France and Germany were making a “big play” for Brexit dividends in the tech centre and this was contributing to a decline in investment in the UK.
This comes a matter of days after Boris Johnson said the UK would quit the EU on 31 October “do or die” if he became prime minister.