Wake Smith chairman John Baddeley looks at the latest Brexit news…
With the UK's withdrawal from the European Union, what is the immediate impact for businesses?
The fact that the UK secured a trade deal with the EU in the 'eleventh hour' has meant that much of the anticipated disruption to cross-channel transport has been minimised, causing only minor challenges rather than the feared grid-lock at ports.
Taxes will not apply between EU and UK trade, but paper work will be required by businesses wishing to trade across the channel, including licenses to transport certain plants, animals and specific foodstuffs.
What we can expect, particularly after a six month period of grace, are punitive tariffs to start creeping in once the rules around trade change according to EU law or UK law, as both trading partners may now legislate on their own terms.
If one side takes exception to any changes made by the other side, disputes may be triggered which could lead to the imposition of tariffs on specific goods in the future.
In the meantime, the UK is now free to set its own trade agreements with non EU countries and these could lead to a shift in the volume of trade that is conducted with the EU over the long term, where UK companies can benefit from improved trading conditions for similar products.
Travel rules to the EU have now changed and this affects length of stay in EU countries, which may be subject to visa requirements beyond 90 days and insurance for travel, which will need to have health insurance.
Accordingly, UK nationals will need to use non-EU lanes at immigration border checks and will need a minimum of six months before their passport expires in order to travel.
For those who employ EU nationals, immigration changes will mean that a points-based system will apply to those wanting to live and work in the UK, with skilled workers requiring a visa, unless they fulfil a role that the UK has a shortage of that particular skill. We will be addressing these requirements in a forthcoming round table event next month.
Equally, UK professional qualifications may no longer be recognised by EU countries for people wanting to work therein. Each country will have its own requirements, which professionals will need to meet.
In other matters, Brexit has brought about a rapid change in the latest long-range forecasts from the Centre for Economics and Business Research (CEBR), with Britain predicted to remain in the top five of the global growth league tables and the economy expected to be 23 per cent larger than France's by 2035.
If you would like advice on your business and the effect of Brexit contact the Wake Smith company commercial team on 0114 266 6660.
