Political chaos has put companies off planning for a no-deal Brexit, research from a leading business group has revealed.

Few companies are readying themselves for a no-deal scenario because they are “in the dark” about government plans, the Institute of Directors said.

A survey of 800 business leaders carried out by the body revealed that less than a third had done any contingency planning.

Nearly half of businesses claimed they had been put off by the lack of leadership from Westminster. Companies said they were waiting for more clarity on the future EU-UK relationship before plotting changes.

Around 10pc of construction, finance and IT companies had already put contingency plans in place.