When it comes to the whole Brexit fiasco you sit in one of two camps; you’re either against leaving or you’re very BREXcited about it (excuse the pun). No matter which camp you sit in, you can’t deny the fact that we are now leaving the European Union. So the next step is looking into the future and finding ways to make it work. Now that the dust has settled after the main event has ended, let’s have a look at how Brexit will affect businesses in the UK for now and in the future.
When it was first announced that the UK was officially leaving the EU, there was a big sense of fear and uncertainty – and quite rightly so. It is something different and new, not only in the UK but the entirety of Europe. Although we are not the first country to leave, Brexit stands out because of the magnitude of the UK and the foothold it has in global politics and the Global Economy. Britain had one of the largest economies in the European Union so hearing that we are officially leaving is a big deal to say the least. In this fear, some companies have either moved their HQ out of the country or have threatened it due to the scepticism of what will happen in the future. A lot of companies whose headquarters are situated in the UK but do a lot of business out of Britain are moving to other areas of Europe. This is because it is believed that England won’t have the same connections and could potentially make commerce more expensive or more difficult.
Probably one of the biggest changes noticed after the Brexit results were announced was the value of the pound. It dropped. In fact, it didn’t just drop. It plummeted down to the tune of around €1.20 per Pound, the lowest it has been since the Eighties! – Remember the eighties? When Prince Charles married Lady Diana? Yes, it was that long ago – This will lead to imported goods being more expensive, which will drive businesses in the future to increase prices of their produce. Doubt and lack of direction regarding the future after Brexit and the pound will also make people less likely to invest into projects, as we don’t know whether the Sterling will rise or fall again. It’s not all doom and gloom though. Companies that export goods may see increased sales as their products will become cheaper which in turn will make business more competitive. Also, the pound value has been rising again and is forecast to rise in the near future so we will have to sit tight and see what happens in relation to that.
Finally, even though it has been months since the vote to leave was decided, people are still unsure of what effects Brexit will have in the future. We know that this is a little bit inconclusive but that’s the truth. There are predictions ranging from optimistic, which paint the future in a positive light, to predictions saying that there won’t be a United Kingdom in 5 years. This theory says that Scotland will have another referendum which will end with them leaving the United Kingdom and joining back to the EU, and that Northern Ireland will join back with the rest of Ireland. Other predictions say that in the 5 years after Brexit we will be back to the economic and financial footing we were at previously and that other countries will follow our example and leave the EU. The unpredictability of what is going to happen links directly back to the fact that we are stepping into unfamiliar territory, so it is a game of “wait and see”…
It’s safe to say that no one really knows what will happen in the future of this small island. All we can do is sit, wait and hope that we have the right leadership that can make the best decisions to lead us forward…
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March 13, 2017
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