The firm’s survey of some 360 businesses revealed the ongoing uncertainty around Britain’s Brexit deal with the EU has dampened investment as almost one third (29%) of mid-sized companies reported holding fire on making long-term investment plans.

Paul Eagland, managing partner at BDO, said: ‘The business community has really been left in limbo while the government continues its Brexit discussions.

‘As we start the one-year Brexit countdown, it’s vital that the government focuses on creating a simple and stable environment that allows these companies to continue to drive growth for the UK and ensure we remain a strong nation to do business with.’

Eagland said the research also showed mid-sized businesses want a focus on domestic policies while the government continues its international negotiations. When asked which policy would best help their businesses grow now and in a post-Brexit future, almost half (46%) named tackling the UK skills crisis as the number one priority.

In addition, 41% of mid-sized companies called for government to help make doing business at home easier by simplifying the UK tax system.

Creating the right environment for businesses and local communities across the UK to flourish was a priority for 39% of these businesses as they called for more investment in smart physical and digital infrastructure.

Separately, a snapshot member survey by ACCA has found the UK financial services (FS) sector increasingly feels risks outweigh opportunities as Brexit draws nearer.

Almost half (49%) of representatives from FS firms surveyed by ACCA stated that the risks posed by Brexit are greater than the opportunities (compared to 14% who believed the opposite). Last year the proportion was 40% and 16%.

The latest survey also found that the number of respondents making Brexit contingency plans has increased. Yet over a third say they will have either little or no preparation plan in place by the time the UK formally leaves the EU in a year’s time.

Maggie McGhee, director of professional insights at ACCA, said: ‘‘While the proposed transition deal means business as a whole has some degree of clarity, the race is now on to secure a favourable Brexit outcome for FS.

‘At the same, government should not lose sight of the long-term opportunities for Brexit. A favourable regulatory environment could benefit financial services if it facilitates improved relationships with the global economy.

‘Yet to achieve the right levels of cooperation and coordination with our European and global partners, the work has to start now.’

ACCA’s survey is here.

Report by Pat Sweet