BUSINESSES are facing the threat of a second wave of coronavirus and receding government support schemes with just 98 days to go until the end of the Brexit transition period.

The British Chambers of Commerce says there are 26 key questions that remain unanswered as it publishes a critical update of its Brexit guidance dashboard.

The leading business group published the document alongside new research which suggests business are now well prepared for the coming changes due to the unprecedented challenges facing them.

Just 38 per cent of firms have done a Brexit risk assessment in 2020, compared to 57 per cent in 2019, its research shows.

The BCC’s Brexit guidance dashboard compiles 35 questions most frequently raised by businesses, many of which apply in a deal or no deal scenario.

The BCC gives just nine a green status, indicating there is sufficient information available to plan.

Nineteen are amber, indicating some information is available, and seven are red, indicating there is inadequate actionable information.

Many of the unanswered questions reflect fundamental aspects of how companies operate.

Among other things:

• firms do not know what rules of origin will apply after the transition period, preventing them and their customers from planning and potentially creating unprecedented new administration and costs;

• there is no clarity on how food and drink due to be sold in the EU and Northern Ireland is to be labelled;

• very limited guidance on the movement of goods from Great Britain to Northern Ireland; and

• no information on the UK Shared Prosperity Fund, key to ‘levelling up’ the regions and nations - despite years of calls for clarity.

Low levels of business preparedness

New BCC research released today also found that more than half (51 per cent) of firms surveyed had not taken any of the eight steps recommended by government to prepare for changes in the movement of goods between the UK and the EU.

The BCC, which represents 75,000 firms of all sizes and sectors across the UK, has written to Cabinet Office Minister Michael Gove seeking action for businesses and urgent discussions to help firms prepare.

BCC director general Adam Marshall said: “With just 98 days to go, business communities face the triple threat of a resurgent Coronavirus, receding government support schemes, and a disorderly end to the transition period.

“Significant unanswered questions remain for businesses. Many firms say they've heard talk of deadlines and cliff edges before, and others are still grappling with fundamental challenges as a result of the pandemic and have little cash or information with which to plan.

“While we recognise that some of the questions facing businesses are subject to ongoing negotiations between the government and the EU, other matters are within the UK’s own hands. The government must ramp up engagement with business urgently – to the levels seen prior to previous ‘no deal’ deadlines – to ensure that the real-world issues facing firms get tackled immediately.

“The ‘Check, Change, Go’ campaign gives the impression that Brexit-related changes are like getting an MOT – whereas the reality is that for many businesses, they’re more akin to planning a moon landing. Businesses need honest communication about the complexity of the changes they face – and stronger encouragement to act.”