Brexit: Government must act swiftly to minimise uncertainty, says CBI

The Confederation of British Industry (CBI) has warned the Government must act swiftly to minimise uncertainty for businesses generated by Britain's decision to leave the European Union.

The Leave campaign secured 52% of preferences at last week's historic vote, but the road ahead for the pro-Brexit movement looks far from straightforward, given the apparent lack of a concrete plan to steer Britain out of the EU.

The uncertainty surrounding Britain's future has seen the pound plunge to its lowest level in three decades, while the FTSE 100 extended Friday's losses and had lost another 1% by mid-morning on Monday (27 June).

In an article for The Times, CBI director general Carolyn Fairbairn said the vote will define the future of the UK for generations to come and urged the Government to deliver a business plan to deal with the outcome of the referendum.

"The impact cannot be underestimated and will take time to understand," she said.

"Many people, including the UK's thousands of businesses, are asking what this means for them and the people who depend on them. What we need is a plan.

"The government must act with urgency to minimise the uncertainties that affect investment decisions and slow job creation."

While the majority of businesses had come out to support the Remain campaign, Fairbairn was adamant they would cooperate with the Government to overcome the upcoming challenges and ensure the UK remains competitive.

However, the political turmoil that has engulfed Britain in the days following the EU vote posed a serious threat to British companies.

"Never has there been a more important time to put the interests of the country ahead of party politics," Fairbairn said.

"Businesses welcome the prime minister's announcement of a delay in triggering Article 50 to create breathing space, but need rapid clarity on who is making the decisions.

"We must agree the principles that should underpin our new relationship with Europe and the rest of the world. At the highest level, the government should resolve publicly to preserve the openness of the UK's economy, one of its greatest strengths."

The CBI comments came on the same day as George Osborne spoke before the Treasury to reassure businesses that Britain was ready to confront what the future holds from "a position of strength", although he warned leaving the EU will have an impact on the UK's public finances.

"Thank goodness we fixed the roof, while we could," Osborne said in a speech at the Treasury in London in his first public appearance after Britain voted to leave the EU last week.

"Leaving the EU was not the outcome that I wanted or campaigned, but now that democracy has spoken we must act on that result. I will fully respect that result."