General election: Boris Johnson sparks more uncertainty after refusing to say if businesses should continue no-deal Brexit preparations

The prime minister’s comments came after Dominic Raab said no deal would ‘absolutely’ be on the table in trade talks with the EU

Boris Johnson has come under fire for deepening Brexit uncertainty after he refused to say whether businesses should continue preparations for a no-deal exit if he wins a majority in the 12 December general election.

The prime minister was accused by Liberal Democrats of “insulting” voters by claiming to be able to “get Brexit done” while refusing to acknowledge that his plan will simply push the cliff-edge back from 31 January to the end of 2020.

And the Confederation of British Industry (CBI) warned that a no-deal Brexit at the end of next year would “put the brakes on UK growth and cement businesses’ worst fears”. Investment will only be unlocked once firms are certain that the threat of no deal is gone, he said.

Foreign secretary Dominic Raab confirmed on Tuesday that the UK will “absolutely” keep no deal on the table in trade talks with the EU following the UK’s formal withdrawal on 31 January.

The Conservative manifesto has ruled out any extension of the trade talks beyond December 2020, raising the prospect of departure without a deal if agreement cannot be reached within the extremely tight 11-month timetable the prime minister has set himself.

The independent UK in a Changing Europe think tank warned on Tuesday that this would mean shifting onto unfavourable World Trade Organisation rules at the start of 2021, slashing UK GDP by an estimated 3.2 to 4.5 per cent and delivering a £28bn annual hit to government finances.

Asked three times by The Independent whether businesses should be preparing for the possibility of no deal on 31 December 2020, Mr Johnson dodged the issue entirely.

“We have a great deal,” said the prime minister. “It’s going to allow us to come out smoothly and efficiently on 31 January.”

The withdrawal agreement struck with Brussels does not prevent a no-deal Brexit, but will – if implemented – delay any possible cliff-edge until the end of December 2020 by granting the UK a transition period during which existing trade rules will continue to apply.

But when it was pointed out to Mr Johnson that the risk of no deal does not arise in January but in December, he simply repeated his answer.

And when he was asked whether he was able to advise companies to cease no-deal preparations, he replied only: “We have a great deal which will allow us to come out smoothly, efficiently, seamlessly on 31 January.”

Tom Brake: ‘The audacity of the Conservatives ... is frankly insulting to all those whose votes they are seeking next week’ (Getty)

Liberal Democrat Brexit spokesperson Tom Brake said: “The audacity of the Conservatives in telling the public that they’re getting Brexit done, when in reality all that means is more uncertainty for British business, more money wasted on no-deal preparations and more jobs on the line, is frankly insulting to all those whose votes they are seeking next week.

“Boris Johnson’s Conservatives are putting no deal back on the table. This will be dangerous and damaging for people’s livelihoods, our public services, and is precisely why we must do everything we can to stop a Conservative majority.

“This election is a once-in-a-generation opportunity to build a brighter future for our country by stopping Brexit and stopping Boris Johnson. Only the Liberal Democrats can take seats from the Tories on 12 December.”

The deputy director general of the CBI, Josh Hardie, warned: “A no-deal Brexit would put the brakes on UK growth and cement businesses’ worst fears. What’s needed is a clear and committed line of sight to an ambitious deal that will protect the UK’s economy and future prosperity.

“If firms can see a close deal with the EU on the horizon, with no further Brexit cliff-edges to worry about, investment will be unlocked.”