The chairman of Shepton Mallet Chamber of Commerce has expressed his concern over the possible impact of a no deal Brexit on small businesses.

This follows new research from the Federation of Small Businesses (FSB) which shows that nearly half (43 per cent) of small firms in the South West believe that a no deal scenario on October 31 will negatively impact them.

Shepton Chamber's Alan Stone, who runs Stone's Cider, said that someone will profit from any chaos, but it is unlikely to be small businesses.

He said: "How can you prepare if you just don't know what is going to happen?

"As small business owners we will just have to go with the flow and react as thing happen and take shape.

"If the dislocation in the market place is considerable there is little individual businesses can do to protect themselves.

"I think we are all working on the assumption of some disconnection in the market place. But how long will it last? How severe will it be?

"The reactions of the finance markets and the banks is crucial - will they want to be helping small businesses and the 10 per cent of self employed workers?

"If they are not, we could well enter a vicious downward spiral with an acute lack of confidence.

"The huge mistake the British media and public are making about Brexit is to see it as a political issue.

"In reality it is an economic issue and the need for ongoing economic well-being. Many important people are talking the wrong language."

According to the new FSB research, less than one in ten (eight per cent) believe that a no deal Brexit will have a positive impact on their business.

Nationally, among those small firms that believe a no deal scenario on October 31 will negatively impact them (39 per cent), only one in five (21 per cent) have planned or prepared for anticipated issues. Nearly two thirds (63 per cent) don't think they are able to plan.

Preparations for a no deal Brexit has come with a high price with the average cost for these businesses that have prepared, coming in at around £2,000.

That average cost rises to £3,000 for smaller businesses that export and import. Just under one third (31 per cent) of prepared small businesses have stockpiled ahead of October 31 while 34 per cent report temporarily or permanently reduced profitability.

Just under half (46 per cent) of these firms, along with those that plan to prepare for no-deal over the next few weeks, think that the volatility in sterling has negatively impacted their business.

Almost half (46 per cent) of small businesses, that believe they will be negatively impacted by a no-deal scenario, would welcome some form of financial support.

In response to the findings, FSB national chairman, Mike Cherry, renewed calls for the provision of financial assistance such as vouchers worth up to £3,000 to assist with preparing for a potential no deal scenario, including supporting small firms in reaching new global markets.

Given the number of small businesses unable to take specific actions to prepare, he also called for wide-reaching measures in an early budget to boost small business cash flow.

These include a temporary reduction in VAT, an uprating of the employment allowance, an expansion of HMRC time to pay arrangements and extending the two-year retailers' business rates discount of 33 per cent, to a wider range of smaller businesses.

Mr Cherry said: "As the risk of a chaotic no deal Brexit on October 31 remains alive and kicking, it is worrying that many small firms have either not prepared or are finding that they can't prepare.

"Ongoing uncertainty is to blame for preparations hitting the skids with the picture still not clear as to how the UK will leave the EU on October 31.

"Until we get clarity, small firms must prepare for the cliff edge where possible, and make preparations for a no deal Brexit.

"Preparing for this outcome is coming at a high price, though, with small firms being hit by an unstable pound and having to shell out money on a potential outcome that has been highly disruptive, remains uncertain and is unwanted.

"Government must use what little time is left before October 31 to provide small firms with the support they need to navigate the unchartered and turbulent waters of a no deal Brexit.

"Raising awareness is important, but not enough. The Government must also turn to meaningful financial support.

"This is desperately needed and would certainly provide a much needed shot in the arm for those firms that have already spent money preparing."