As the government continues the negotiations of a Brexit deal, the possibility of a no-deal Brexit coming into fruition is not completely off of the cards. Though there is still a vast amount of uncertainty surrounding this, only time will tell what it could mean for your business. In this article, we’ll be looking into what it could mean for the UK Business sector and its future growth.
Slow Down In Manufacturing
One of the biggest impacts on the business thus far as we begin to look into the effects of a no-deal Brexit on business is the slowing down of manufacturing to a seven-year low since July of 2012. EU-based customers are beginning to shun British manufactures as the risk of a no-deal Brexit becomes much more likely as this could lead to potential disruptions at the border following October 31st of this year.
In addition to the lack of investments from European countries, there has also been a decrease in the number of orders from the US and Asia as the world economy begins to slow. This is a direct consequence of the ongoing political uncertainty between Britain and the EU and America and China.
Though there is a vast amount of uncertainty surrounding the exact impact that leaving the EU will have on the UK as a whole, experts are warning that a No-Deal Brexit could result in loss of access to 70 international trade deals as well as access to the EU criminal database. This could be an issue for the UK as this can then increase the likelihood of goods checks between Northern Ireland and the Republic of Ireland making it difficult to transport goods between Ireland and the UK. The Irish backstop has been a sticking point for many in the Brexit negotiations, however, the recent appointment of Boris Johnson has led to further disagreements regarding the correct way for Britain to leave the EU. Despite this ongoing negotiation in parliament, many business owners are sceptical as to where this could leave their business in the long term following the October 31st Brexit deadline.
Imports And Exports
In the unlikely event of a no-deal Brexit, there is a contingency plan in place with Her Majesties Revenue & Customs to ensure that there are no delays expected at major borders around the UK. However, it is important for businesses to have a plan in place and follow these few simple steps:
- Be Aware Of Potential Customs Changes
- Be Aware Of Revenue that Is generated From Within The EU
- Be Aware Of The Supply Chain With EU Partners
- Renegotiate Commercial Terms To Reflect Changes If Necessary
- Register To The HMRC’s EU Exit Plan For Updates
By having these simple steps in place, you can then begin to implement changes needed to counteract the effects that a no-deal Brexit could have on your business and the longevity of its operation and whether or not a corporate relocation is on the cards in the future.
The final element to consider when looking into how a no-deal Brexit will impact business is the licensing agreements between your business and the countries that you are selling to. Although this is not needed under EU regulation this will be needed in the result of a no-deal Brexit as trade agreements may not be carried through as a result of no preparations being made by the British government. Though this may not be needed, it is important to have this in place as this will help to protect your business regardless of the outcome.
For more information on how we can help you with your business or even preparation for an office relocation outside of the UK, contact a member of our experienced team, today.