Video by Brian Chang

Shops build up stockpiles for expected chaos but people are urged not to panic

Talks over a possible Brexit deal could continue until as late as the days between Christmas and New Year, following the passing of the latest deadline on Sunday.

Boris Johnson, Britain's prime minister, and European Commission president, Ursula von der Leyen, agreed to "go the extra mile" and notably failed to mention the date for any renewed cut-off point before the current Brexit transition period expires on Dec 31, which many observers have taken as an encouraging sign, following growing fears of a no-deal Brexit.

The United Kingdom left the European Union in January, since when it has been in a transition period, which expires at the end of the year, and during which a deal regarding future trade arrangements between the UK and the 27 EU member states was to be concluded.

Former government chief whip Mark Harper told BBC Radio's Westminster Hour program that working up until the last minute was a distinct possibility.

"Many of us are fully anticipating it's entirely possible we might be returning to Parliament between Christmas and new year to scrutinize this and vote it through if a deal is done," he said.

The feeling of optimism was reflected on the financial markets, where sterling rose against the dollar and the euro.

"Although there is little sign at this stage that the main sticking points are any closer to being resolved, we expect progress to be made as the only real deadline, Dec 31, approaches," said Mark Haefele, from UBS Global Wealth Management, adding that a deal "is still more likely than not".

Uncertainty over how companies will be operating in less than three weeks' time has caused anxiety for many businesses, and made forward planning guesswork.

A survey by Aldermore Bank shows 47 percent of small and medium enterprises, or SMEs, that import goods and services from the EU, and 43 percent tbat export there, have made no preparations.

"Our research reveals that many SMEs are generally unprepared for Brexit or are delaying plans to address the impact until after the end of the transition period," said Aldermore's business finance group managing director, Tim Boag.

"Whilst the delay in preparing for Brexit is understandable given the ongoing impact of the pandemic, the potential wide-ranging effects of Brexit on many businesses means it's crucial that SMEs begin to take steps to prepare."

Meanwhile, the British Retail Consortium says retailers are increasing stocks to ensure a "sufficient supply of essential products" because of uncertainty over how their supply chains will operate.

The Daily Telegraph reports that supplies of non-perishable items are being built up, and disruption to the supply of fresh goods is expected, as they cannot be stored.

However, Business Secretary Alok Sharma said individuals should not build up their own stockpiles.

"I'm very confident that actually the supply chains will still be in place," he told Sky News. "I would say to everyone - just do your normal shopping as you would do and I think we will find we are going to be absolutely fine."