© Policy Exchange
Most British businesses are unprepared for a no-deal Brexit, according to the governor of the Bank of England, Mark Carney.
A big proponent of a transition period, Carney was speaking after he released analysis suggesting that failure to agree a deal next March, would see the UK slip into a recession worse than the 2008 financial crisis.
Carney went onto suggest that the UK would need a transition period to adapt to whatever form of exit from the EU that Parliament chose.
In an interview on BBC Radio 4’s Today programme, Carney said: “We know from our contacts with business, others know from their contacts, that less than half the businesses in the country have initiated their contingency plans for a no-deal Brexit.
“All the industries, all the infrastructure of the country, are they all ready at this point in time? And, as best as we can tell, the answer is no.”
The Financial Conduct Authority has echoed Carney’s concerns stating that a no-deal scenario could lead to “significant changes” with fears that it might not be able to protect the UK from suffering serious setbacks without a transition period.
However, this news has not gone down well with Brexiter Jacob Rees-Mogg, who opposed this.
In a statement, he said: “You’ve got to think of the predictions we got before we chose to leave the European Union, at which point, Mark Carney said we would have a technical recession. He’s said this sort of thing before and he’s been wrong. Now the forecasts are so hysterical they’re hard to take seriously.
“Bearing in mind, this is the same Bank of England which didn’t forecast the crash in 2008, had no idea it was going to happen and is now saying we’re going to have something worse than that which it could not forecast.”
Comments related to the current article