Wake Smith chairman John Baddeley looks at the latest Brexit news...
The Prime Minister's withdrawal agreement has met its first challenge since the general election, after the House of Lords rejected the bill, in favour of amendments to guarantee an automatic right for eligible EU citizens to stay in the UK after Brexit.
It is proposed that those citizens who are legally entitled to remain in the UK are provided with proof of UK residency to avoid another Windrush scandal, with unfair deportations taking place.
The government also faced two more defeats in the House of Lords, this time relating to the UK's eligibility to separate from the authority of the European Court of Justice following the country's departure from the EU.
Whether any of the suggested amendments put forward by the House of Lords will be implemented remains to be seen. The withdrawal agreement will return to the House of Commons, where Conservative MP's are most likely to be whipped to overturn the amendments.
In other Brexit news published by City A.M. - In the run up to October 2019, 1,441 overseas financial firms applied to the Financial Conduct Authority for permissions to operate in the UK so that they can continue to serve clients after Brexit.
The move could see more than 1,000 European Union banks, asset management companies, payments companies and insurers opening new offices in the UK and helping the financial sector to rally once unrestricted binary access between the UK and the EU ceases.
Despite this positive note, the Institute of Directors continues to push for greater clarity from the government on its intended trade deal with the EU, to help businesses to prepare adequately.
This follows the Chancellor of the Exchequer's remarks that the UK will not align with EU regulations after its official departure from the EU.
In regards to the Prime Minister's position on negotiations, he is expected to announce plans to implement 'fast-track' trade deals with both the EU and the US as trade talks officially kick off in February.
Trade talks are expected to happen concurrently and talks are also proposed for trade negotiations with other countries, including Japan, Australia and New Zealand. Do we have the skills and resources to conduct that many concurrent trade negotiations? The government has pledged to publish its US trading objectives in February, hopefully offering some clarity for businesses looking to trade overseas.
It is also expected that the government will pursue a Canada-style trade deal with the EU, which would need to be concluded by the end of the year to meet the Brexit transition period deadline.
Sceptics are quick to point out that the complexities of negotiating trade deals with any country makes it unlikely that anything beyond 'heads of terms' might reach agreement within the limited timeframe of the UK's Brexit transition period.
With just over one week to go until the UK enters its Brexit transition period, expect rhetoric surrounding Brexit to increase...
