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The business is praying that Brexit will be delayed



"Many of the companies we speak with are praying for an expansion," said James Stewart, head of Brexit at KPMG. "At that point, even our most informed customers feel that something could happen."

British lawmakers have rejected the opt-out agreement negotiated by Prime Minister Theresa May and EU officials. Parliament will vote on Tuesday on amendments that would give legislators more control over Brexit. However, there is no guarantee that the deadlock will be broken. And there is little evidence that the EU leaders will resume negotiations.

Given the rapidly approaching deadline and the serious economic consequences that would follow the collapse of the bloc without an agreement, delaying Brexit has become more acceptable to the business.

Business lobby groups called for clarity on the terms of the divorce and future UK trade relations with the European Union. Their focus, however, has focused in recent weeks on preventing a disorderly separation at any cost. The European Union would have to agree to a British request for delay.

The cost of the crash

McDonald's ( MCD ) and KFC  <span class= joined British supermarkets on Monday to warn that a European Union crash on March 29 would lead to "significant" disruptions in their supply chains.

The companies said that they store goods where possible, but "all frozen and refrigerated warehouses are already in use and there is very little general storage space." They warned of a "devastating impact" on British farmers.

Airbus ( EADSF ) said last week that it would be forced to divert future investment if Britain crashes from the European Union. And Ford ( F ) said that a 201
9 no-deal Brexit would cost $ 800 million.
  Sony Europe withdraws legal basis from UK Brexit

The British Chamber of Commerce summarizes the input of its members in this way: An untidy Brexit, they warn "a disaster for the British economy, for business and for a livelihood."

A collapse of the European Union would lead to new costs and barriers to trade for UK companies. Scorched supply chains would put manufacturing companies in a particularly difficult position.

Mark Essex, Public Relations Director at KPMG, said that "unknown unknowns" could cause the biggest problems for businesses.

  Airbus and Ford warn of dire consequences if Brexit goes bad

"The supermarkets Think about where they will buy their bread Bananas are coming, but what they may not think about, where does the spare part for their refrigerator come from, if it breaks down, "he said. "What if it's stuck in Germany?"

According to the Federation of Small Businesses, 41% of companies believe that a chaotic Brexit would impact their business, but they have not started planning yet.

The cost of delay

While this may be an appealing option for businesses, delaying Brexit could be costly.

Large and small businesses have complained since the referendum in June 2016 that uncertainty about future trade rules has led to a delay in investment. And a delay means more uncertainty.

According to the National Statistics Office, business investment in the United Kingdom declined for three consecutive quarters from January to September, the longest decline since the global financial crisis.

Banks and other financial firms already have assets Under Brexit, assets have been shifted by at least 800 billion pounds ($ 1 trillion) out of the country and into the European Union, according to EY.

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