No-deal Brexit and Covid put Yorkshire businesses in 'moment of peril', says Ed Miliband

Businesses in Yorkshire and across the country are in a “moment of peril”, it has been warned, as the threat of a no-deal Brexit and the implications of a second wave of coronavirus loom over the economy.

The Government was facing mounting calls to strengthen financial support relating to coronavirus, and Chancellor Rishi Sunak was due to address the House of Commons on Thursday (September 24) to set out his plan for the coming months, scrapping the Winter Budget due to the urgency.

Downing Street admitted said time was running out to reach a trade deal with the EU, and figures showing just one in four businesses are ready for post-Brexit arrangements.

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The British Chambers of Commerce (BCC) said there were 26 key questions that remain to be answered. The group said its research suggested preparation for the coming changes after Brexit was low due to the “unprecedented challenges” facing companies.

The Bank of England’s governor, Andrew Bailey, yesterday said it was time to “stop and rethink” the furlough scheme in favour of a targeted approach.

And in an address to the nation, Labour leader Sir Keir Starmer demanded a ‘Plan B’ for the economy alongside new restrictions, after calls from the Confederation of British Industry and trade unions to continue some form of support after furlough ends.

Shadow Business Secretary Ed Miliband, the Doncaster North MP, said: “Businesses are in desperate need of certainty and the Government must urgently outline the measures it will take to prevent mass unemployment.

Chancellor Rishi Sunak was due to address the House of Commons on Thursday (September 24) to set out his plan for the coming months, scrapping the Winter Budget due to the urgency. Pic: PAChancellor Rishi Sunak was due to address the House of Commons on Thursday (September 24) to set out his plan for the coming months, scrapping the Winter Budget due to the urgency. Pic: PA
Chancellor Rishi Sunak was due to address the House of Commons on Thursday (September 24) to set out his plan for the coming months, scrapping the Winter Budget due to the urgency. Pic: PA
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“The Government must stop posturing and ensure it delivers the ‘oven-ready’ trade deal with the EU promised during the election, and ensure all preparations are in place for the end of the transition period which will be vital for so many businesses across the UK.

“This is a moment of peril for Yorkshire’s businesses. The Government needs to step up, do its job and give firms and workers the support they need and deserve.”

Mr Sunak is understood to be weighing up several possible measures to subsidise workers’ wages, and Prime Minister Boris Johnson promised “creative and imaginative” action.

Mr Sunak has cancelled the 2020 Budget to allow him to focus on his winter economic plans to replace the furlough scheme, and a source close to the Treasury said: “No-one wanted to be in this situation, but we need to respond to it.

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“The Chancellor has shown he has been creative in the past and we hope that people will trust us to continue in that vein.

“Giving people reassurance and businesses the help they need to get through this is uppermost in his mind.”

Boris Johnson faced repeated calls at Prime Minister’s Questions yesterday to put new measures in place.

But the Chancellor of the Duchy of Lancaster, Michael Gove, said just one in four businesses believe they are “fully ready” for the post-Brexit arrangements.

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He said more are becoming prepared but there are “still many” who have “not quite taken the steps they need to”, and added: “Our survey evidence indicates while 78 per cent of businesses have taken steps, just 24 per cent believe they are fully ready.”

He revealed that 43 per cent of businesses believed the transition period would be extended, despite the deadline for that being possible having passed.

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