In a historic referendum on June 23rd, 2016, Britain voted to leave the European Union. Were the British people given false hopes and promises? The answer to this question will be revealed in due time. Only one thing is clear, impacts on the economy to varying degrees are already being felt after the Brexit vote.
Success or failure of Brexit will be made by the millions of decisions made by individuals and companies, not the politicians.
Many people believe all these negative warnings about Brexit are nothing more than fear mongering. People are still living like before and daily activities have not changed. The prosperity of the United Kingdom has been strongly influenced by its membership of the European Union. With the usual movement of Economics to be very slow, it can take months or years for the economic cycles to play out.
However, what many do not realize is that despite having a vote, the United Kingdom has not actually left the European Union yet. Hence, for the time being we are still able to live our lives with no immediate major changes being felt. But companies are already planning their future in Europe after Brexit. The Brexit Polls were close, because the lies told by Boris Johnson and Nigel Farage were believed by enough people. Now comes the cost.
The real Brexit results will be felt once we are out of the EU.
The United Kingdom is known as one of the most prosperous countries in the world as well as being the base for many international companies, thus cementing itself as a seat of power and prestige. One thing the UK can be proud of is its reputation as one of the best countries to start a business, but all these could change because of Brexit and the unknown changes it will bring.
A business may be operated in the United Kingdom but not every component required can be easily sourced in the UK.
For example, a business may already be manufacturing in the United Kingdom, but not everything used can be sourced locally. For example, some of the raw materials may come from Italy, a different component that is crucial for production may come only from Germany. Experts for a very specific process may come from another European country. Free trade between the United Kingdom and various countries that are members of the European Union will not be so easy in the future.
This means that the cost of raw materials, supplies, and even crucial workers will all rise. Not everything produced will be sold in the UK. Exporting will also be affected since higher costs, tariffs, and other charges will also go up. These are just some of the effects that can be seen and observed.
Lots of the information is available piecemeal, and many stories do not make the headlines. Gradually as the implications of Brexit become clear, businesses of all types are starting to plan for the exit from the UK. The £ is already showing signs of weakening further, after a 15% drop. Companies are closing down for a number of reasons, investment delayed. It is not all bad news, but there is more bad than good. Don’t forget the effect on UK farmers and the European Funding.
This Blog will gather the bad news about Brexit and what action companies, organisations, the UK and the EU are taking, all will affect the UK in some way.
Finally Parliament has given itself the power to vote on the final Brexit deal, before any documents are signed. This is important, and thanks to 11 MP’s, all MP’s will be able to vote not just the Conservative and Unionist party. Hopefully this will save the UK from disintegrating.
Read some of the latest changes here.