Chaos, uncertainty, shambles are among the first few synonyms associated with Brexit by many in the business community. Prime Minister Theresa May, EU and Parliament in a bid at achieving some sort of a deal have been going back and forth over Brexit negotiations for the last three years. While the Confederation of British Industry (CBI) has called the possibility of a no-deal Brexit a “national emergency”, some members of the British Asian businesses are fed-up of the uncertainty that lingers even days after the UK was officially designated to leave the EU on 29th March.
“I want certainty,” said Surinder Arora, founder and chairman of Arora Group.
“Three years ago when we opened the InterContinental O2, we used to say that we would have no problem recruiting staff in East London but it has been tough everywhere because of this uncertainty,” revealed the hotel tycoon.
PM May is at her weakest after Parliament seized control of Brexit where the government was defeated by mere 27 votes on her designed plan. A plan that would indicate the way forward in understanding the kind of deal that Parliament wanted. However, after her defeat again, the Parliament is to debate Brexit once again, over a series of indicative votes.
A no-deal is better than this constant limbo
“My first choice would be to leave with some kind of a deal but if we fail to secure one then I would rather leave with a no-deal and just move on,” Arora emphasized.
Earlier in the week, fractures within the Conservative Party had led to reports of a possible coup against the Prime Minister where politicians were planning to oust Theresa May. The possibility of a general election still clouds over the UK especially after about six million people have signed an online petition demanding that article 50 be revoked.
“It is a pity that a lot of these politicians have placed their own vested interests over what is right for the nation.
“But, having a delay, or having another vote, is frustrating. Businesses have been suffering badly because of this uncertainty,” said Arora.
It's impossible to provide definite numbers on how jobs, output and investment have been affected so far. But perhaps, the suffering of these British businesses was the most pronounced when Business Minister, Richard Harrington resigned with a warning that the government's handling of Brexit amounted to "playing roulette with the lives and livelihoods" of the British public. As an employer of over 3000 workers, many hailing from Eastern European countries, Arora would personally prefer a deal which secures the freedom of movement of EU citizens but according to some EU officials the chances of achieving a softer-Brexit deal remain slim to none.
Theresa May should remain the PM
And amidst other industrialists frustrated with this uncertainty is GP Hinduja, of the Hinduja Group and the richest Asian businessman in the UK according to The Sunday Times rich list of 2018.
“I, like most people, do not want a general election as this will achieve little and only create more uncertainty. As a businessman and investor, I do not like uncertainty.
“Furthermore, I believe Theresa May will remain Prime Minister as there seems to be no obvious alternative – above all, she cannot be challenged by her Conservative Party MPs for the leadership of the Party until December and if she is forced to resign it will take several months for the Party to elect a new leader,” said GP Hinduja in a statement to Asian Voice.
Both the CBI and the Trades Union Congress have requested for the PM to draw up a plan B to avoid crashing out of the EU without a deal. But on a more optimistic note, GP Hinduja is certain that Brexit will not take place.
“Ever since the Referendum result in 2016, I have expressed my belief that Brexit will not actually happen.
“As we have seen there seems no consensus in Parliament on the way forward which makes it more likely that Brexit will be delayed further and in turn this makes Brexit even more unlikely,” he said.
But in a worst case scenario, the Hinduja group which has investments globally and in the UK, say that the senior management has looked at all possible scenarios to mitigate risks and are well prepared for whatever is the ultimate outcome.
Stockpiling tinned food and a slower economy
But Brexit uncertainty has not spared businesses in Northern Ireland either where some organisations have cut down on staff for the first time in four years due to lower growth rates. According to the Ulster Bank Northern Ireland purchasing managers index, business had been in subdued mood in January and some reports have suggested that the economy's growth is at a 28-month low. Hospitality is probably one of the worst affected sectors due to labour shortage but this is closely followed by the food and beverage industry where a lot of these supplies are imported from the EU. Concerns over food supplies have centred on blockages at ports amid fears that added documentation will lead to backlogs as truck drivers wait to clear customs. As the U.K. relies on fresh food and vegetables imported from the EU, some of these may be in short supply and the government has urged supermarkets to stockpile.
“We have to deal with whatever is the outcome and move forward with that. Yes, we have been stockpiling products over the last few months. But one can only stockpile products covering supply for a few months,” said Pradip Dhamecha, of Dhamecha cash-and-carry group.
There is a general consensus among some experts and politicians that the onus of the Brexit crisis fundamentally lies on the PM for delaying the vote and failing in her communications with the opposition and for not pushing 'tougher negotiations with the EU'.
“For the last few months, I think that Mrs. May has done a tremendous job as the Prime Minister. She has not cared for herself unlike many others but I do wish that the government would have woken up two years earlier.
At the end of the day let's not forget the EU needs the UK as much as we need them,” he pointed out,” concluded Surinder Arora.
