Business leaders have reacted with dismay at the collapse of cross-party talks Brexit.

Labour leader Jeremy Corbyn announced on Friday that the talks to try and find common ground on a deal for Britain’s exit from the European Union had “gone as far as they can”, citing continued differences on policy and instability within the Government.

As well as attempting to find compromise on Brexit policy, the talks also included discussions around whether to hold a series of indicative votes before the second reading of the Withdrawal Agreement Bill, designed to enable to UK to leave the EU before July 31, according to leaked documents.

But without cross-party agreement, the plans are expected to be abandoned.

Barry Leahey MBE, chair of the Cumbria branch of the Institute of Directors (IoD) branded the situation a “pantomime” and said businesses should continue to prepare for a no-deal Brexit.

“The breakdown of talks will only frustrate and worry the Business Leaders of Cumbria further,” he told in-Cumbria.

“We need clarity and the end of this pantomime sooner rather than later. I recently had a business contact in Germany tell me they put Brexit updates on the television for light entertainment.  

“The Government needs to understand that their short term games are in danger of damaging our great trading history.”

Mr Leahey, also managing director of Playdale Playgrounds, added: “The IoD in Cumbria are here as a body to help with proactive events and advice. The Brexit section on the IoD website is first class and suggest all members use it to prepare for what might be a no deal.”

Director general of the CBI, Carolyn Fairbairn, said the failed cross-party talks represented “six wasted weeks while uncertainty paralyses our economy”.

“The May parliamentary recess should be cancelled and used to agree a deal as soon as possible, whether through indicative votes or the Withdrawal Agreement Bill. Business and the country need an urgent resolution to this mess. This is no time for holidays. It’s time to get on with it.”

Mr Corbyn pulled the plug on talks in a letter to Prime Minister Theresa May.

It said: “I believe the talks between us about finding a compromise agreement on leaving the European Union have now gone as far as they can. While there are some areas where compromise has been possible, we have been unable to bridge important policy gaps between us.

“Even more crucially, the increasing weakness and instability of your Government means there cannot be confidence in securing whatever might be agreed between us.”

In response, the Prime Minister's official spokesman said: “We have made real progress on some issues such as workers' rights and environmental protections, but it is clear that we are not going to be able to reach a complete agreement.

"In particular there have been very challenging discussions in respect of the different positions of the two sides on customs and the holding of a second referendum.”

They also confirmed that no further discussions were planned with Labour.

In response to the decision to call off the cross-party talks, former International Development Secretary Priti Patel tweeted: “Many of us did question the judgment of the Cabinet when they approved those talks...”

The post quote-tweeted a post from Brexit campaigner Darren Grimes who described the talks as “a complete waste of time from the outset”.