This Blog might not change your mind, but it might make you think.
Now that Brexit negotiations have been completed and rejected by Parliament, companies are considering their options. It is only after a number of well known companies and Banks have announced plans that the picture becoming clearer.
They are leaving the UK physically or relocating for tax and compliance purposes. This will be a permanent tax loss for the whole country.
If you have news about job losses, banks moving, companies relocating, investments frozen, please send details for inclusion in this blog and a link to your news source will be included. We will check out the information as much as possible to make certain there are no fake news stories listed.
Success or failure of the UK after Brexit will be made by the millions of decisions made by individuals and companies, not the politicians.
Germany’s biggest Bank, the Deutsche Bank is moving most of it’s resources back to Frankfurt. This makes sense for a major EU bank to be inside the European Union, ready to serve all its existing customers. Nomura the first Japanese securities firm to choose a location in the EU after Brexit
The lost could be a few hundred jobs, and an unknown amount of tax revenue. Plus the City’s reputation will change.
Within a year of the Brexit vote a major supplier of salad produce, Southern Salads has closed with the lost of 260 jobs after 31 years. The closure is blamed on the falling exchange rate which was around £1.32 and is now around £1.o95. a fall of 17%. The closure of the company is likely to affect many restaurants as the company produced 50 tons a day for its many customers. Others may follow.
Salad productsfarmed in the UK often require cheap EU labour to harvest, this may change as Europeans move to other EU countries, then prices will rise even more. Produce shipped from France, The Netherlands, Spain, etc, will now be at least 17% more expensive for the British consumer.
The Irish airline Ryanair confirms it may abandon its few routes which are wholly within the UK, once Brexit is achieved.
Finance director, Neil Sorahan. said it might take this step than to comply with new regulations which demand that it obtain a UK air
operating certificate. Only 2% of its flights would be affected. Ryanair boss Michael O’Leary said this to the European Parliament
Ryanair is one of the most popular airlines flying in and out of the UK, this will hit customers hard. Ryanair is a big beneficiary of the “Open Skies” policy. We welcome news that can be added to this Brexit News blog.
Frankfurt has been selected by the Japanese BankNomura after Brexit. Frankfurt is a lot cheaper location than London, so this will have played into the decision. Another reason is the location of the European Central Bank, and other international Banks. Nomura is Japan’s biggest brokerage firm, this makes this a very important story,
The Irish Times confirms that since Brexit, 100,000 UK companies have registered a new business in the Irish Republic. The Republic will benefit significantly after Brexit is completed. It is too early to be certain but it looks like many companies are planning to remain in the EU somehow.
The costs of moving staff, the language and short distances from Northern Ireland and by sea, make this an attractive choice, plus the lower corporation taxation.
Adding to the list of banks relocating staff and resources is JP Morgan. Dublin, Frankfurt and Luxembourg are the next places to benefit from the UK leaving the EU. “Cannot afford to wait for confirmation on how the industry will be regulated after the UK leaves the EU.” Up to a 1,000 jobs at stake.
Yet another US bank has chosen to make a move from the UK into Europe, based in Frankfurt. The numbers of staff at the Standard Chartered Bank may be small but the effect tax’s for the UK should not be under estimated. This is not just for a year, but many years to come.
Banks accept the growing likelihood that they will lose the automatic right to sell banking services from London. More on this story at the Independent.
A major event is the decision by Morgan Stanley to relocate to Frankfurt after Brexit. If the impossible happens and the UK remains, the damage will already have been done, the jobs will not return. A lease for offices in the Omniturm has been signed.
These plans will have a long term impact of the financial health of the country. Taxes will be lower and less employment.