• By The Financial District


The COVID-19 pandemic has left many British companies more badly prepared to handle a no-deal Brexit than they were before the health crisis, a new report has found.

Euronews, in a report said that the UK officially exited the European Union on January 31 and entered into a transition period designed to give negotiators more time to strike a deal. This extra time will come to an end on December 31, 2020.

Many businesses have struggled to prepare for Brexit because of continued uncertainty over what the future relationship between London and the continent will look like, a report from the London-based Institute for Government think tank warned this week.

And the pandemic has only compounded the issue.

"The coronavirus crisis has made a difficult task much harder," the report states.

"Firms reeling from the economic consequences of coronavirus are poorly placed to prepare Brexit: in many cases, in a worse position than in the months leading up to the potential no deal in October 2019," it adds.

The UK is Europe's most severely-impacted country by the pandemic with more than 45,300 fatalities and 295,000 infections reported since the beginning of the outbreak.

To stem the spread of the disease, the government, like other countries across Europe and the world, imposed lockdown measures in March. As a result, most non-essential businesses were shut for two months.