Chamber chief issues stark warning on how no deal Brexit would impact Sheffield businesses

Richard Wright told councillors a no deal Brexit would “knock businesses back for a long while” but the Chamber would do everything it could to keep the city trading.

“If I could tell you what Brexit means I would be a genius and make a fortune on the stock market,” he told a scrutiny meeting.

“The vast majority of businesses wanted to remain but have respected and accepted the referendum.

“The current no trade deal is effectively no deal because the trade deal is the really important part for business.

“A no deal immediately subjects business to further currency movements which is effectively making imports much more expensive. They don’t always have the opportunity to pass those increases on because they are selling on the Continent against other suppliers on the Continent who don’t need to absorb that.

“You will get trade tariffs, the average in this region is about about 2.8 per cent. There will be big cash flow problems because all imports will have VAT, to be paid when it’s brought in.

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“You might claim it back in a couple of months time but there aren’t that many businesses, especially small business, sat out there with cash mountains to absorb that.

“You will have lots more documentation, more letters of credit needed and customs declaration on imports and exports.

“It takes 45 minutes to do a customs declaration on an import and that’s not an insignificant amount of time and time is cost.”

Mr Wright said his fear was the Chamber would not be able to help businesses if there was sudden movement with Brexit.

“As a Chamber we have become competent in every single one of those and we can do it for businesses but we have a finite capacity.”

He added: “I cannot believe a no deal Brexit is good. We will get through it but it will knock us back for a long while.”