The uncertainty surrounding the UK’s withdrawal from the EU is spreading ‘panic’ in boardrooms, the South West Regional Director of the CBI has warned.

Deborah Fraser, talking on the  Industrial Strategy Panel at the West of England Economic Growth Conference, said that firms must be planning for the consequences of a hard Brexit: “The biggest concern is panic in boardroom about the level of uncertainty. If you haven’t started planning, start talking to your main suppliers: big suppliers will have done a huge amount of Brexit planning and whether they need to think about stockpiling. Don’t do nothing, don’t just sit and panic: there are things we can do.”
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And Fraser urged south west firms to lobby their local MPs about the consequences of Brexit on their businesses: “The level of understanding of Brexit isn’t really understood, you need to be talking to your MPs about the knock-on impact on growth and prosperity. Please don’t assume that the level of understanding of our elected members is what it should be in terms of the business agenda.”

She said that the region had to work harder to get its voice heard in the corridors of power at Westminster: “It’s frustrating that the south west is not as articulate as we need to be. Whether on infrastructure or spending on a whole range of areas we don’t get our fair share.”

By contrast, the authorities in the Northern Powerhouse area are more co-ordinated, Fraser said: “They don’t wash their dirty linen in public and they talk to Whitehall with one unique voice.”

And she said that the region had to work harder to get its priorities on the agenda given its relatively limited clout compared to other regions with the four per cent of UK GVA it contributes dwarfed by the Northern Powerhouse area’s one-fifth share. But Fraser said there are areas where the region is clear about how it can work together, such as transport, identifying the M5, access to airports, and the A303 as priorities.

Businesses must also think on a bigger scale than the West of England devolved authority, she said: “Business don’t think of geographical boundaries. Lot of businesses in the west of England don’t think West of England, they think nationally or internationally. When thinking of devolution, don’t think small. The bigger you can be in terms of economic power greater your clout.

Nick Sturge, Regional Chair of the Institute of Directors, backed up Fraser, describing the West of England’s million-strong population a ‘really very small’ economic unit. He agreed with Fraser that the sub-region must think bigger, pointing out that the district from Bristol to Cardiff is 50 miles, which is also the length of Silicon Valley.

Local and regional governments have to work out how not to stoke needless competition between different areas, Sturge said: “There are great schemes to incentivise companies to move to Wales, which is unhelpful when you look at the UK on a global scale. Local authorities need to look at their role in a bigger picture.”

But he said the west of England benefits from a diversity of economic activity.

Mel Karam, Chief Executive of Bristol Water, said that while the short and medium term impact of Brexit are uncertain, his company is gearing up to cope with the growth that it expects to see across the region over the next 25 years. He said: “We are trying to make sure that the infrastructure is ready and we are not reactive so we can support growth.”

Karam also highlighted challenges that the consequences of climate changes pose to those planning the region’s infrastructure needs: “In the past nine months, we  have seen one of the harshest winters on record and we’ve just come out of one of the hottest, driest summers on record. These have a massive impact on infra, but it’s very difficult to plan for those things.”

Tom Gorringe, a Director of Bristol Rovers FC, said that economic growth would support the club’s ambition to reach win promotion to the Premiership: “A more stable economy in the city means more people will spend on football tickets and more corporate spending.”
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