Brexit delay will keep fog of uncertainty hanging over UK economy | Larry Elliott

Failure to find a way forward could result in a delayed budget, weaker pound and lower growth forecast

Brexit uncertainty has been a drag on the economy. The International Monetary Fund thinks most of the damage it estimates will occur as a result of Britain's decision to leave the EU has already happened. For obvious reasons, investment has been particularly weak with businesses reluctant to commit to new capital projects until they have a better idea what the future holds.

As a matter of logic, therefore, the fresh delay to the Brexit process - unless it is short-lived - means more uncertainty and weaker activity. Investment plans will remain mothballed. Construction sites will go into hibernation for the winter. Retailers, with their busiest time of the year coming up, will have every reason to be worried about how sales will hold up.