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The future of Brexit

Since British citizens have voted to leave the EU, the last 23rd of June, many articles and talks have been made on newspapers or general medias. But how Brexit will affect European and International business, that have decided to set their business in the heart and capital of the European Economy? The answer is too broad and it is difficult to give an exact answer to this question, even because the negotiation between UK and EU has not been started yet and the future of the United Kingdom with or without the EU is still uncertain.
However, even if the circumstances of the Brexit are still unclear, nowadays what is assured is that the Brexit will cause a future drop in the next months, and the value of the pound will continue to decrease compared to the value of the Euro and the Dollar. Moreover, by reading some articles on Internet, is clear that some positions about Brexit are too optimistic while others are too pessimistic. For this reason, is impossible to give a clear voice or feeling about this topic, in particular from a Consulting Company that is trying to broad its business in the UK.

According to Quickbooks website, ‘A Brexit could remove a great many regulations pertaining to employment and immigration policy. Those arguing in favor of a Brexit point to how it would enable the UK Government to decide which of these regulations it wished to maintain and which to repeal.’ Indeed, business will have better chances to succeed in Britain due to less regulation and taxes that United Kingdom is paying to the EU, however, the article continues claiming ‘ Brexit may affect the economy so that UK borrowers will pay a higher price for credit. A report from RatingsDirect claimed that leaving would mean that less credit will be available for SMEs in the UK. Mark Carney, Governor of the Bank of England, claimed that a Brexit could lower the value of the pound, stoke inflation and increase unemployment. However, Andrea Leadsom, Conservative energy minister and former Economic Secretary to the Treasury, described Carney’s comments as “totally speculative”.

In a speech given by Mrs. May on 17 January 2017, the UK Government will seek “new, comprehensive bold and ambitious free trade agreement” with the EU and that the UK: such as leaving the Single Market, control the immigration to Britain from Europe, will create new free trade with EU countries and international markets.

In conclusion, business needs to wait for the negotiation from EU and UK, but since then, laws will still remain the same and they will not affect the British economy at all, but it will strength and deal new positive opportunities. Miky Niky Consulting is open to any advice to business that wants to create a business in the United Kingdom with an open consultancy with a prepared Business team that will help all needs and desired from new possible clients.

Sources:
https://www.quickbooks.co.uk/r/small-business-survival/what-does-a-brexi... (Quickbook.co.uk, 2017);
http://www.eversheds-sutherland.com/global/en/what/publications/brexit/d... (eversheds-sutherland, 2017)

Giulia Di Giorgio, Marketing Assistant Miky Niky Consulting