U.K business says Brexit extension averts crisis

One of Britain's leading business lobby groups says the Brexit extension granted to the country at a summit in Brussels overnight means an 'imminent economic crisis' has been averted.

However, the Confederation of British Industry is warning that a fresh start is needed to avoid more acute uncertainty in the run up to the new October 31 Brexit deadline.

CBI director-general, Carolyn Fairbairn, said businesses will be adjusting their plans to cope with a potential 'no-deal' Brexit later in the year but won't be cancelling them.

She says Britain's leaders must make productive use of the time afforded by the extension announced by the EU following hours of discussions.

"Sincere cross-party collaboration must happen now to end this crisis," she said.

Cross-party talks between the government and the opposition Labour Party have not produced a breakthrough in the Brexit impasse.