A British Institute of Directors’ (IoD) survey shows that almost one-third of firms surveyed are planning to shift operations abroad to cope with a hard Brexit.

And more than one in ten have also shifted offshore because of the “significant risk” to their businesses, as Westminster remains in political gridlock.

The IoD represents 30,000 businesses and says that most of its members are planning to remain inside the EU.

IoD interim director Edwin Morgan said yesterday: “We can no more ignore the real consequences of delay and confusion than business leaders can ignore the hard choices that they face in protecting their companies.

Trade barriers

“Change is a necessary and often positive part of doing business, but the unavoidable disruption and increased trade barriers that ‘no deal’ would bring are entirely unproductive.”

Sony and Panasonic have already moved their head offices to the continent, but the IoD said that smaller companies were also shifting operations.

“While the actions of big companies have been making headlines, these figures suggest that smaller enterprises are increasingly considering taking the serious step of moving some operations abroad.

Costly

“For these firms, typically with tighter resources, to be thinking about such a costly course of action makes clear the precarious position they are in,” Morgan said.

The survey shows that 11% have already relocated, while 5% are planning to go. Another 13% are ‘actively considering’ a move overseas.