Top 5 Brexit News This Week
- On Friday, 25thOct, EU leaders have agreed to a extension but haven’t set a decide – Nov 15, Dec 31, 3 month extension exit or not. French President Emmanuel Macron has opposed any further delay stating that EU has been focusing on Brexit for more than three years and should now shift attention on internal reforms instead (…)
- PM Johnson agreed to grant more time to the MPs for studying his Brexit deal but on condition of holding general elections on 12th As per his letter sent to opposition party leader – Jeremy Corbyn, Mr. Johnson stated that the Parliament can be dissolved on 6thNovember if there is support for his requested election plan in December. Motion for holding elections in December will be held on Monday, 28th October in parliament, wherein, two-thirds of the House is required to vote in favor (…)
- PM Boris Johnson stressed that the only way to break Brexit deadlock is through a general election and that he will ask the Parliament to pass a motion calling for an early election. (…)
- UK Parliament sat on a Saturday for the first time in 37 years to vote on PM Boris Johnson’s Brexit deal. However, the planned vote was averted when the MPs decided to adopt an amendment which requires the PM to ask for a third extension to the UK’s withdrawal from the bloc. Mr. Johnson has been forced to write to the EU, asking for another extension, although he also said that the delay would be a mistake (…)
- British Finance Minister, Sajid Javid has decided to postpone his first budget statement which was due to be released on 6thNovember post Brexit, given that an extension is the most likely outcome now (…)
- European Council President – Donald Tusk suggested that all EU member states should approve delay in Britain’s departure date after PM Johnson decides to put Brexit deal on hold. Although, the 27 EU leaders are keen to avoid a chaotic no-deal Brexit and are unlikely to reject the request for an extension, the frustration among the member states has grown considerably (…)
- New report from Confederation of British Industry (CBI) suggests that 80% of companies in the UK’s creative industries are worried about the impact Brexit will have on their reputation.(…)
- Leaders from Northern Ireland are concerned about the consequences of PM Johnson’s Brexit deal on the Industry, after the UK government have admitted to implement new trade barriers across the Irish Sea. On Monday, 21stOct the UK government revealed that post-Brexit the goods moving from Britain to Northern Ireland would be subject to ‘sign import declaration’ and an entry summary declaration, in an addition to creating an administrative cost of up to GBP 56 per custom declaration (…)
- The government faces the challenge of smaller companies “not actually getting ready for Brexit”, according to Business Secretary Andrea Leadsom. The Secretary of State added that the majority are waiting for clarity on the Brexit outcome before taking action to prepare.
- In a select committee hearing, Leadsom emphasised the support available to businesses through the business readiness fund that has been allocated to 65 trade bodies across a variety of industries.
- CFO survey
- Deloitte’s Q3 2019 CFO survey shows that Brexit remains a top concern for CFOs and over 75% continue to “expect a deterioration in the overall business environment” due to Brexit.
- Other concerns for CFOs are weak demand in the UK and rising geopolitical risks worldwide. Overall sentiment remains subdued as CFOs expect a period of persistent uncertainty, during which they will prioritise cost reduction and expect to reduce hiring.
- The government has automatically enrolled 95,000 firms onto its Transitional Simplified Procedures (TSP) scheme. This allows “most traders up to 6 months to pay import duties and submit customs declarations” in the event of a no deal Brexit.
- The simplified import procedures aim to “prevent congestion at the border when goods enter the UK” and help businesses who are new to the customs process.
UK No Deal Readiness
The government has issued a report on the UK’s no deal Brexit readiness
The report provides updates on preparations in a number of key Brexit areas including borders, citizens, data, the environment and services.
- The Government has released an updated no deal tariff schedule. The main changes in the new schedule are a reduction in the duty on HGVs coming down from 22% to 10%, and an increase of 12% added to many items of clothing. Bio-Ethanol has also received a re-classification meaning it now attracts a 6% tariff.
- HMRC report
- HMRC has issued a report that estimates the costs of the ongoing administrative burden on UK-EU trade are £15 billion, per year. The report warns that companies will face “a significant ongoing administrative burden”, alongside “significant costs”. The report also outlines the temporary easements that HMRC has put in place to “simplify the declaration process”.
- Government borrowing
- The Institute for Fiscal studies has issued a new report covering the effect of borrowing on the government’s finances in a no deal Brexit. The Report warns that a no deal Brexit could see government debt hit “90% of national income”, its highest level since the mid-1960s.
- The report also examines the various Brexit outcomes, and concludes that no Brexit would be the most economically beneficial, followed by a deal, an extension, and then no deal