Wake Smith chairman Nick Lambert looks at the latest Brexit news...
The EU has now agreed an extension to Article 50, meaning that the UK exit from the EU will have a 31 January deadline, unless Parliament agrees on Boris Johnson's withdrawal agreement in the meantime.
This extension however, is being overshadowed by a forthcoming general election, which Parliament has agreed will take place on 12 of December – conditional on the election vote being approved by the House of Lords, which many see as a formality.
Despite the extension preventing the UK from leaving the EU without any deal in place until at least the end of January, circumstances are not providing any security for businesses or the wider economy.
This is essentially due to the fact that Brexit is in a more uncertain status than at any point since the referendum as the election battle lines are drawn primarily to reflect party policies on the UK's future relationship with the EU.
The traditional two-party system of politics which has dominated UK elections has changed drastically, with many smaller parties now likely to secure votes entirely based on the Brexit question and whether or not they are campaigning to remain in the EU, offer a second referendum, accept the Prime Minister's deal or push for a no-deal Brexit.
Investors are unable to make informed decisions until the outcome of the election and the possible way forward for UK trade with the EU and the rest of the world has been defined and we can see whether any party takes a majority during the election, earning the ability to break the Parliamentary impasse.
The uncertainty does not end there. Boris Johnson is campaigning to leave the EU with his deal, which in itself doesn't appeal to many businesses as it is only the start of a very difficult period of negotiation with the EU to hammer out the trade specifics that commerce will rely upon.
The Liberal Democrats wish to entirely overturn Brexit and revoke Article 50, which is not likely to be passed by a Parliament which has voted numerous times in support of Article 50, which is seen as the act that confirms Westminster's acceptance of the referendum.
The Labour Party will campaign for a second referendum, which is not the only controversial point in their approach to the election, with many investors voicing concerns at the possibility of a Corbyn/McDonnell led Government, which is pro nationalisation and widely viewed as a major risk to private enterprise.
Added to this simmering pot of uncertainty - the SNP leader, Nicola Sturgeon, has signalled her intention to campaign in the election for a further referendum on Scottish independence, threatening yet further fragmentation of the United Kingdom's political system.
And finally, if the Conservative Party wins an election with a comfortable majority, the Prime Minister could still fail to gain Parliamentary agreement on Boris Johnson's withdrawal agreement within the Brexit extension, so the possibility of the UK departing from the EU without a trade deal is still very plausible.
