EU firms warn of deserting UK suppliers after Brexit

British exporters could lose billions after two-thirds of EU firms saying they expect to move part of supply chain out of UK

British exporters have been put on notice that they could lose billions of pounds worth of business after almost two-thirds of EU businesses who work with UK suppliers warned they expect to use more firms inside the single market after Brexit.

The Chartered Institute of Procurement & Supply (CIPS) said 63% of the EU companies surveyed last month said they planned to move some of their supply chain out of the UK as a result of the decision to leave the single market and customs union. The results represent a large increase on a survey in May, when 44% of EU businesses said they were preparing to switch.

A hard Brexit would take Britain out of the EU's single market and customs union and ends its obligations to respect the four freedoms, make big EU budget payments and accept the jurisdiction of the ECJ: what Brexiters mean by "taking back control" of Britain's borders, laws and money. It would mean a return of trade tariffs, depending on what (if any) FTA was agreed. See our full Brexit phrasebook.

Related: Business Today: sign up for a morning shot of financial news

Related: UK firms want a Brexit transition deal by March