More than a quarter of UK businesses are not sure they will be ready for Brexit before the end of the year, new data has shown.

The Institute of Directors called on the Government to “pull out all the stops” to get a deal before the transition period ends on December 31.

In a survey of nearly 1,000 company directors, 29% said they were unsure whether they would be ready for Brexit before then.

Of those who said their business would be affected by Brexit, 57% thought their ability to prepare was somewhat or entirely dependent on the outcome of the negotiations.

“Right now, Brexit is a moving target for directors. Trying to prepare, while dealing with the impacts of the pandemic, is a tall order” said IoD director-general Jonathan Geldart.

“As the PM heads to Brussels, getting a deal is still crucial. It will put organisations on both sides on much better footing, for the short-term and the long-term. No-deal would hamper the recovery business leaders want to fuel in the new year.”

He added that with only weeks left, it is no surprise that most directors are not ready for the UK’s exit from the European Union.

He called on the Government to take a pragmatic approach to Brexit, which centres around giving companies the time they need.

“The impact of coronavirus makes these all the more pressing, but we’re running out of road.

“Businesses don’t want to start this new chapter with one hand tied behind their back.”

The survey showed that 26% of directors believe they are fully prepared for the end of the transition period, 22% said they will be prepared before the end of the year, 29% say they are not sure if they will be done on time, 19% said they will not be impacted by Brexit, and 5% did not know.