ONE in four business leaders plan to freeze recruitment in the wake of the referendum result and some are considering moving work abroad, a new study has revealed.

Meanwhile industry leaders have stepped up their calls for the government to make sure the economy remains stable.

A poll of more than 1,000 members of the Institute of Directors (IoD) found two out of three believe Brexit will be bad for their business.

A third said hiring will continue at the same pace, but a quarter will put a freeze on recruitment, and five per cent will make redundancies.

One in five said they are considering moving some of their operations outside of the UK, and only one per cent said they will bring operations back.

Simon Walker, director-general of the Institute of Directors, said: “Businesses will be busy working out how they are going to adapt and succeed after the referendum result. But we can’t sugar-coat this, many of our members are feeling anxious.

“A majority of business leaders think the vote for Brexit is bad for them, and as a result plans for investment and hiring are being put on hold or scaled back.”

More than a third of IoD members said the outcome of last Thursday’s vote will cause them to cut investment in their business, against one in 10 who said they will increase investment. Just under half said it will not change their investment plans.

The IoD said the overwhelming priority for business leaders is that steps are taken to protect the economy from the negative reaction in financial markets, followed by securing a new trade arrangement with the EU.

Business Secretary Sajid Javid said: “Most business leaders wanted the UK to remain in the European Union. The economic risks of Brexit haven’t gone away, but I’m determined to help reduce them, and look for opportunities.

“There are significant challenges ahead but the success of the past few years means we’re better able to withstand the current market turbulence.

“I’ll be sitting down with heads of industry and the leaders of Britain’s biggest business organisations this week to help plan out our next steps. They have weathered storms before and together we can make this work.”

As Sir Richard Branson called on Parliament to take a second look at the EU referendum, the acting director-general of the British Chambers of Commerce, Dr Adam Marshall said businesses wanted a steady stream of communication from ministers and the Bank of England –- with stability, clarity and action the “watch-words” for firms.

He said: “So far, the priority for the chancellor and the governor has rightly been the question of stability, as markets and firms digest the electorate’s decision.

“However, attention swiftly needs to turn to delivering clarity. While it is prudent for the UK government to delay firing the starting gun on negotiations with the European Union, firms want a clear timetable, and simultaneous action to support the wider economy.

“The big decisions –- on airports, energy generation, HS2, housebuilding and more –- need to be followed through. The decision to delay a post-referendum budget must not be a convenient excuse for ministers to duck these important choices. Action and momentum over the coming months are vital to stoking the embers of business confidence.”

Carolyn Fairbairn, director-general of the CBI, described the referendum result as “explosive” –- saying it will define the fortunes of the United Kingdom for generations to come.

She said: “The impact cannot be underestimated and will take time to understand.

“Many people, including the UK’s thousands of businesses, are asking what this means for them and the people who depend on them. What we need is a plan.”

Sir Richard Branson believes the Leave vote has “opened a Pandora’s Box of negative consequences” for Britain, fed on “false promises” by Brexiteers.

In his blog, the Virgin Group founder said: “The decision over the UK’s future was based on false promises that pushed a minority of the UK’s total voting population (17 million out of 46 million) to vote the way it did.

“Two years before Brexit will even become reality, according to EU rules, it is already having massive consequences on the UK economy, and on society. Brexit has fractured the country more than any other event in recent memory.

“Based on the misrepresentation made by the Leave campaign, Parliament needs to take the petition of more than three million people to call for a new referendum seriously. The alternative is to watch a rapid decline of Britain’s health and wellbeing.”