Irish businesses brace for ‘blond bombshell’ Johnson in Number 10

There was no let-up in the pressure on sterling even though Mr Johnson’s victory in the Conservative Party poll of its members was long anticipated.

It fell against the dollar to $1.243. Against the euro after its sharp declines in recent weeks, it was little changed on the day at 89.61 cent.

The hardline rhetoric of Mr Johnson during the Tory contest, as he pledged come what may to take the UK out of the EU by the end of October, has unsettled investors in all types of UK assets, including sterling, domestic UK shares, and UK commercial and residential property.

Chris Beauchamp, chief market analyst at online broker IG, said a large range of risks now faces the UK, including a cabinet reshuffle under Mr Johnson, and a possible snap general election.

“Now markets must wait to see what ideas the blond bombshell has in relation to the Gordian knot of Brexit,” said Mr Beauchamp.

His elevation to prime minister, succeeding Theresa May, has increased the risks of a no-deal Brexit at Halloween and cranked up the uncertainty for business across the island, as well as for exporters and importers across the Irish Sea.

Many reports from Government agencies and think tanks since the summer 2016 UK referendum have warned that Brexit will harm most businesses and farming in a broad swathe stretching from north Cork through the midlands and across the North.

Brian Keegan, director of public affairs at Chartered Accountants Ireland, stepped up its warning for Irish firms to get their plans right or risk losing access to UK markets.

“Regardless of the form Brexit will take, Irish traders need to file customs returns before they can move their goods to, from or through the UK... Otherwise, goods will be detained at ports and borders because Revenue officials will check that the proper declarations are in place,” he said.

The British-Irish Chamber of Commerce said it wants the new UK government and the EU to reach some sort of accommodation to avoid “a disastrous” hard Brexit.

“Businesses on both sides of the Irish Sea have been operating without any clarity and in fear of a no-deal Brexit for too long. In recent weeks, small and medium-sized businesses have had to take the costly decisions to implement no-deal Brexit contingency measures that inhibit their ability to grow in the short term,” said its head John McGrane.

In the North, where the economic fallout of any form of Brexit is widely predicted to be the most severe, the Northern Ireland Chamber said all efforts should be made to avoid a no-deal Brexit.

“Whilst there is absolutely no appetite for a no-deal exit, the [UK] government must simultaneously step-up and provide businesses with the urgent support they need to plan for all scenarios,” said its chief executive Ann McGregor.

In London, consultancy group Capital Economics said the way Mr Johnson handles Brexit remains a mystery.

“But it’s going to be turbulent and the chances of a no-deal Brexit and a general election and/or a Labour government are surely higher now than they’ve ever been,” it said.