Are UK Businesses Ready For a “No-Deal” Brexit?
Some Say No, They Are Not!
Brexit, love it, hate it, voted to stay, voted to leave, regardless it is here and soon upon us. And I mean upon us!
If no deal is “hatched” by the current so called government by October 31st, Halloween how appropriate, we leave the EU with no deal.
What does a no deal Brexit mean? Is it a good thing, or a bad thing?
Once again the deal or no deal sparks debate, just as leave or remain sparked debate.
While a deal or no deal is too huge to list and cover here, there are a few highlights we can make.
One is do we stay in the single or “common market”, which is the EU. The common market we are now a part of allows us to sell, buy and trade with other EU countries without tariffs or additional costs to do so.
No one country can produce all the food, fuel, and everything that country requires, so we trade with other countries.
Having a common market aids in “improving the efficiency of the allocation of resources”.
Once we leave the EU if no deal is made regarding trade and tariffs and this single market, we could be out of the market, and on our own. Being independent may sound good, but it could mean some products we buy here that are made, grown, or produced in other EU countries, will now have a higher price tag.
Labour costs for workers could very well change, which could cause a spike in some food items.
As an estimate there are over four (4) million EU workers in the UK currently, if we add in their families, this number could rise to over eight (8) million.
By leaving the EU and closing our borders to “free movement”, we could lose some of these workers, which impacts our economy.
Part of this has been addressed by the government in the form of the EU Settlement Scheme, which allows those from the EU to live, stay and work here in the UK.
Then there are some more personal at home thins a no deal may bring about, such as roaming charges for mobile phones when we are a broad, the need for a special drivers licence to drive abroad, travel insurance may become more expensive, and we may need Visa’s or some form or identity documents outside or our passports just to holiday abroad.
And those that think leaving the EU without a deal means we do not need to pay the “divorce bill” of what may be over £37 billion, that’s right billion, think again.
The EU is not going to forget or forgive that amount of money.
So one question asked is, how does a no deal affect businesses?
Businesses Preparing For Brexit
Some industries, such as the airline industry, have already been preparing for the Brexit, and for a no deal scenario.
They are leaving the UK, not in the sense of adios and goodbye, but by opening headquarters in the EU so they can still have the ability to work, trade and make use of the EU laws and rules, and have a presence in the EU.
With some industries moving abroad also means billions of pounds being moved abroad, outside of the UK.
Companies want to be prepared for any event if they wish to survive, and a no deal Brexit is a huge event!
But not all companies and businesses can and will be prepared.
Mark Carney, who is the Governor of the Bank of England, feels that 150,000 firms are not “fully ready” for a no deal Brexit.
He stated, “Business will be reliant on what the governments are able to do in order to keep the ports open, the trade flowing.”
Some firms may not be ready for an increase in goods they require to produce or manufacture their products, or there could be reduction in those good or products.
All of which would cause a spike in their costs, which in turn would be passed onto us the consumer. And not all companies may be prepared for this, it could slow production, putting some out of business.
All this does not mean that leaving the EU with a “deal” is good either, it would depend on what that deal involved and covered.
A very complicated and complex issue. Why to was put to a general referendum and vote to the general public is beyond many people’s comprehension???
If the politicians and lawmakers cannot fully decipher the concept of leaving the EU, how can the general public?