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The question of ‘deal’ Brexit or ‘no deal’ Brexit looks no closer to being resolved, despite there being just 100 days to go until the UK is scheduled to leave the EU.

Last week, Theresa May called off the planned House of Commons vote on her Brexit deal at the 11th hour to avoid defeat and the political turmoil continues.

MPs at Westminster will not now get a chance to have their say on the Brexit deal until the middle of January.

This continued uncertainty is causing further concern among Scottish businesses who warn that the closer the UK gets to the Brexit date of 29 March 2019, the more confidence is suffering.

Industry leaders are urging politicians to come together to agree a Brexit deal that will restore some stability in the economy.

Tracy Black, director of CBI Scotland, says: “With just 100 days to go until the UK leaves the EU, it’s time to restore confidence in politics and our economy.

“Politicians must finally stop the endless infighting of the past 30 months and come together to secure a workable Brexit deal - companies and the country have had enough of chaos.

(Image: SNS Group)

“Uncertainty is throttling firms and threatening jobs – not in the future but right now. We need to know for certain that a no deal Brexit will not happen because until we receive assurances on that, damage to investment, jobs and future growth will continue.”

It isn’t just larger business that export that are suffering, with industry bodies warning that the confidence of smaller companies is being badly impacted.

Colin Borland, the head of devolved nations at the Federation of Small Business (FSB), comments: “Scottish small business confidence is at the lowest level we’ve ever measured, down in no small part to the uncertainty associated with the UK leaving the EU.

“Our elected representatives need to lay out a clear path past the end of March deadline, otherwise confidence will struggle to recover.

“We’d encourage Scottish smaller businesses to check out the information we’ve provided on our website to help them plan ahead.

“We’d also suggest looking at the useful information that Scottish Enterprise and others have provided at www.prepareforbrexit.scot.

"This isn’t just about exporters or importers, or even businesses in international supply chains. There’s likely to be a direct or indirect impact across a wide variety of sectors and geographies.

“However, even the most diligent business owner may struggle to put effective contingency plans in place across all the possible outcomes. And it seems probable that smaller organisations are likely to proportionally less prepared than their average larger counterpart. That’s why a robust, clear plan for the future is so important for businesses.”

A lack of a clear plan around Brexit is also hitting markets and investors, with Tom McPhail, head of policy at Hargreaves Lansdown, saying: “We’re trapped in this extraordinary Schrodinger’s Brexit situation where no one knows what’s going to happen: everything could be fine, or it could be a disaster.

“Anyone trying to plan their lives, their spending or their investment decisions, whether they are individuals or businesses, wants certainty above all else. Our clients are consistently telling us the current Brexit uncertainty is undermining investor confidence and stalling business planning.

“The closer we get to 29 March without a solution, as the risk of a no-deal Brexit and the consequent economic turmoil increases, the more genuine anxiety investors, businesses and the markets will suffer.”

John Moore, senior investment manager at Brewin Dolphin, adds: “After stock markets shrugged off the initial shock of the Brexit vote in June 2016, the uncertainty it has caused has been laid bare over the past year: a record £7.8bn was pulled from UK equity funds in 2018 up until mid-December.

"As a consequence, the UK market looks cheap with an aggregate yield from the 100 largest businesses hitting 4.9 per cent and that’s expected to reach a new peak in 2019. Some will see that as an opportunity to buy into the market, but there are undoubtedly still bumps in the road ahead.

“A no-deal Brexit could cause particular problems for domestically-focussed UK companies, such as construction firms, and to a certain extent, you’re already seeing this, and related recessionary fears, priced into their shares. But we should remember that Brexit is a political hang-up rather than an economic one; albeit, at this stage, no one can rule out it evolving into the latter.”

UK-wide, in a joint statement the British Chambers of Commerce, the CBI, EEF, Institute of Directors and the FSB said firms are pausing or diverting investment that should be boosting productivity, jobs and pay.

The statement said: "Businesses have been watching in horror as politicians have focused on factional disputes rather than practical steps that business needs to move forward.

"The lack of progress in Westminster means that the risk of a no-deal Brexit is rising.

"With just 100 days to go, the suggestion that no deal can be 'managed' is not a credible proposition.

"Businesses would face massive new customs costs and tariffs. Disruption at ports could destroy carefully built supply chains.

"From broadcasters, to insurance brokers, to our financial services - the UK's world-leading services sector will be needlessly disadvantaged, and many professional qualifications will be unrecognised across the EU.

"UK and EU nationals working abroad will be left in deep uncertainty about their future.

"As a result of the lack of progress, the Government is understandably now in a place where it must step up no-deal planning, but it is clear there is simply not enough time to prevent severe dislocation and disruption in just 100 days."