London (CNN Business)Britain is already heading for the worst coronavirus-induced slump of any major economy. Now fears are rising that businesses could be slammed by a second body blow this year — the failure of trade talks with the European Union.

The head of the Confederation of British Industry, which represents 190,000 UK companies, warned Thursday that businesses would be unable to withstand another shock after the coronavirus pandemic hammered their cash reserves and left many fighting to survive.