According to a survey by the Federation of Small Businesses (FSB), around 72% of small businesses in the UK are planning to hold capital investment at current levels for the next two years as the uncertainty around Brexit drags on.

Even though the EU granted a six-month extension on Brexit till October 31, there is still no clarity on whether the UK will depart with or without a deal, and what either scenario would mean for businesses in Britain.

In 2018 as well, businesses had cut back on their plans for investment, while the FSB survey reveals that this could very well continue into 2019 and even 2020. Both lead candidates vying to replace Theresa May as the next British PM have upped the rhetoric around a no-deal Brexit scenario.

In addition, the survey reveals that the number of small firms planning to hire more staff had also touched a three-year low, although this was driven by a severe shortage in skilled staff as Britain’s unemployment levels remained at a record low. 982 small businesses in the UK had participated in this FSB survey held between May 13 and May 27.