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Ibec calls for extra supports for businesses in the event of a no-deal Brexit

Ibec calls for extra supports for businesses in the event of a no-deal Brexit

A new report by employers’ group Ibec has shown €1.5bn in extra supports for businesses will be needed from the State over the next three years if the UK crashes out of the EU without a deal.

Ibec claims decisive intervention will be required from the Government in order to prevent job losses and business closures as a result of a hard Brexit.

The Government has signalled that it will announce a range of measures in Budget 2020 to help business that would be deployed in the event of a hard Brexit.

It has not yet said how much it is willing to commit to such schemes or from when exactly they will take effect.

But Ibec says the risk of a ‘no deal’ is imminent and action is required immediately to provide economic stability and protect employment.

In particular, it said pressure will come on firms from a depreciation in sterling, cancellation of investment, cash flow challenges and increased trade costs, with the rural economy facing a structural shock.

“Timing is of the essence,” said Ibec Chief Economist Gerard Brady.

“Our experience from 2009 shows that it took ten months from agreement on a State Aid framework at a European level until companies could draw down supports.

“In a no-deal scenario, if supports were not available until the middle of 2020, it would be far too late to sustain enterprises and jobs in many areas.”

A range of measures aimed at helping the sectors most at risk from a hard Brexit will be included in Budget 2020, which is due to be announced later today.