On 23 June 2016 the UK public spoke and decided to take the country out of the EU. As the UK begins the process of leaving the EU, many businesses will be wondering what is around the corner.
The first thing is that the UK is unlikely to leave the EU within the next two years and a final settlement may take longer, depending on whether the other 27 member states in the EU agree to extend the deadline.
Before this can happen, however, the UK must formally declare its intentions to leave the EU under Article 50 of the Lisbon Treaty.
It is not yet clear when this will happen, but we should know more in the coming days, following the conclusion to the Conservative leadership race and the selection of Theresa May as the new Prime Minister.
In the meantime, the Chancellor George Osborne has confirmed that we are not likely to have an emergency Budget, as had been suggested in the run up to the leadership vote, but that there is likely to be an increase in tax rates and a cut to public spending at some point. That’s if George Osborne remains as Chancellor, of course!
One thing that should be clear is the uncertainty of this situation. Mitigating this uncertainty and risk for potential investors will be crucial to minimising any negative impact on the UK economy and businesses, which is why The Treasury and The Bank of England are currently carefully monitoring the situation and have said they will do their best to prevent an economic slowdown.
At a more local level, businesses will need to decide how they wish to act or not act during this period. Making the right decisions, at the right time is vitally important to their future, which is why it is important for businesses to have someone that understands them on their side.