Brexit, as it stands today, is undecided, uncertain and erratic. It has divided both Parliament and Party and left many feeling unsure over the fate of Britain once we leave the EU. Some have been optimistic about negotiating trade agreements and opening new doors for the UK. Whilst others have been left with a sense of impending doom.
A lot rests on the terms of the withdrawal agreement. This would be known as a ‘Deal Brexit’ and could bring a lot of clarity and stability to your business. Although, Parliament has voted against the Prime Minister’s withdrawal agreement three times. It’s therefore worth knowing how a No-Deal Brexit could affect your business.
We have compiled expert opinions on how your business could be affected in the event of a No Deal Brexit.
Finance and Banking
The world’s biggest financial hub is arguably London. However quickly cities like Paris and Frankfurt try to catch up to London, it will certainly be a struggle.
Currently, all members of the European Economic Area can access each other’s markets without the need to ask European regulators.
Although the UK has its own financial regulatory bodies (Financial Conduct Authority), much of its financial services are regulated at an EU level through the European Securities and Markets Authority.
So, what does this mean? Essentially, the relationship between the UK and EU will not remain the same. Most of the UK’s trade is through EU deals with non-EU countries. The UK must now renegotiate its deals with non-EU countries. New legislation for the regulation of financial services is also expected.
This depends on whether the UK remains in the European Economic Area. If the UK distances itself from the EU, you could expect great changes.
Current EU laws that have been implemented in English law will remain unless they are changed or completely repealed. Any further agreements will need to be renegotiated with the EU.
It is still unknown whether the UK will recognise the new General Data Protection Regulation as English law. However, the UK Government is on record as having opposed the more “anti-business” aspects of the new GDPR.
If the UK ceases to recognise this, all businesses in the UK will need to reconsider personal data flows to the UK.
Some have speculated that a clean break from the EU could shut the UK off car manufacturers from their supply chains. The damage to the airlines industry is also extensive in that it could cripple the ability for planes to fly.
As we approach 31 October, the implications of Brexit on various sectors should become more apparent.