Brexit deadlock frustrates business as pound slumps

Businesses have expressed their “frustration” over the Brexit deadlock and sterling has continued to fall against the dollar.

Sterling fell by nearly a cent following last night’s votes. The pound initially spiked as Parliament backed the Withdrawal Agreement Bill but then tumbled on the rejection of Prime Minister Boris Johnson’s fast-track plan.

Analysts suggested sterling’s fall was as much to do with the prospect of a general election — and more market uncertainty — than a Brexit delay, with a no-deal exit next week now looking unlikely. Britain’s exit could now be delayed by around four months.

British Chambers of Commerce director general Adam Marshall said: “No one in business will be happy at the continued impasse.

“The immediate priority now must be to avoid a messy and disorderly exit on October 31,” he continued. “As frustrating as it will be to many in business, an extension that gives an opportunity to unlock a comprehensive solution and a smooth transition is still infinitely preferable to an overnight economic shock.”

Moody’s managing director Colin Ellis said: “Significant uncertainties remain around the timing and eventual outcome of Brexit, which is likely going to weigh on spending, investment and hiring decisions.”

The Institute of Directors said: “Following last night’s votes, business leaders will be eager to see an extension confirmed in order to rule out no deal on October 31. A majority of our members are in favour of passing the deal and getting to the next stage of negotiations.”

Melanie Leech, chief executive of the British Property Federation, said: “It remains paramount that we have an orderly exit from the EU.

“The UK must remain open, with the right conditions for investment and trade, to ensure we remain first choice for global talent as a place to live, study and work.”

Insurers and pension funds believe that the US-China trade war and Brexit are weighing on property spending, according to a survey just released of more than 500 insurance and pension fund investment decision-makers by Aviva Investors.