Politics

How Can I Prepare My Business?

Preparing your business for a possible Brexit is vital. If you have not started, you are not alone—April research from the Chartered Institute of Internal Auditors found that only 21 per cent of FTSE 250 companies had made or were currently making contingency plans for Brexit.

It is never too late to begin planning for Brexit. To assess the impact on your business, do the following: (more…)

What Are The Pros And Cons For Businesses?

Each Brexit model is complex and carries with it much uncertainty. However, Brexit’s general pros and cons for businesses are more straightforward and less contingent on unknown circumstances:

Cons:

  • Out of the EU, the United Kingdom will have less control over EU legislation that it may still have to apply if it wants access to the Single Market.
  • Companies may have to pay new taxes and customs costs as well as deal with slower administration processes for conducting business with suppliers in continental Europe.
  • Companies may have difficulty hiring qualified employees from outside the United Kingdom to address the skills shortage, and employees who are non-British nationals may be required to obtain a visa or work permit in order to keep working in the United Kingdom.
  • Other countries may be hesitant to invest in the United Kingdom until it is clear that the UK economy can be successful while independent of the EU, which could weaken the pound.
  • Britain’s trade relationship with the EU could sour if Brexit negotiations go poorly. This situation could be further exacerbated if the United Kingdom is unable to secure beneficial trade deals with other countries.

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An EU Referendum Update For Businesses

As the government’s 23rd June referendum to decide whether the United Kingdom will remain in the EU looms closer, the outcome still remains uncertain.

Until recently, polling has generally favoured the United Kingdom remaining in the EU, but the margins are so tight that most experts agree it will be too close to call—with the still-undecided voters likely to determine the result. However, multiple sources have recently reported a slight swing towards the ‘Leave’ camp. A 3rd June YouGov poll found 45 per cent favour leaving, while 41 per cent favour staying. A 5th June Opinium poll found 43 per cent want to leave and 40 per cent want to stay. And a 6th June ICM poll found 48 to 43 per cent in favour of leaving.

A Brexit outcome would usher in a minimum two-year period during which the United Kingdom would slowly disentangle itself from the EU and negotiate a complex withdrawal agreement. Whatever the outcome on 23rd June, proactive UK employers would do well to understand what Brexit would look like, the general pros and cons, and how they can prepare their businesses for leaving the EU.

What Would Brexit Look Like? (more…)