Home Brexit High-stakes political poker creating uncertainty among business leaders

High-stakes political poker creating uncertainty among business leaders

by LLB Reporter
16th Jan 19 3:30 pm

Business leaders have spoken out today over last nights Brexit vote defeat, politicians once again have created “uncertainty regarding our relationship with the European Union.”

Catherine McGuinness, Policy Chair at the City of London Corporation, said to LondonLovesBusiness that Parliament has tonight voted to reject the Government’s Brexit deal. She said, “Parliament’s decision to reject the Government’s deal means businesses across the UK will continue to face uncertainty regarding our relationship with the European Union.

“The Government must now urgently set out its ‘Plan B’ to ensure we can secure a deal locking in a legally binding transition before 29 March.

“Financial stability must not be jeopardised in a game of high-stakes political poker. Politicians across all parties should work together pragmatically to avoid a no-deal Brexit, which would be a hugely damaging outcome for households and businesses on both sides of the Channel.

“In the meantime, it is critical that EU regulators urgently address cliff-edge issues such as contract continuity and data flows. These are issues that could disrupt cross-border financial services and prevent firms from serving their customers. We need firm action, not just rhetoric, to deal with these issues in the coming days and weeks.”

Ian Wright CBE, FDF chief executive said the government must find a way. He said, “The Prime Minister’s deal has been decisively rejected and it is now vital that the political leadership find a way to indicate what alternative should be pursued.

“We are calling for an extension to the transition period in order for parliament to decide what our next steps are; whether that is a new deal, a referendum, an orderly exit from the EU without a deal at a later date, or a general election.

“The Government should now be looking to speak with representative organisations such as the FDF, to ensure they are pursuing an alternative that prevents further damage to the UK’s wider economy.”

Allan Martinson, CEO and Co-Founder at LeapIN said, “This defeat for the government’s Brexit deal will have dramatic ramifications for businesses in the UK but in particular for micro-business owners.

“Businesses need stability and this anything but that. The failure to strike a deal with the European Union (EU) today pushes the UK dangerously close to the cliff edge of a ‘no deal’ Brexit. In this climate of uncertainty, we can expect to see many micro businesses struggle to survive or even dissolve all together as they lose access to the largest economy in the world, the EU which enables the opportunity to easily trade across borders.

“There are hundreds of thousands of British SMEs currently doing business in EU that may need to create their EU subsidaries after Brexit. Similarly, many one-man companies will need to look for new legal options in order to continue selling in the EU. UK business concerned about this should look to set up virtually such as joining the e-residency programme allowing access to the EU marketplace post Brexit.”

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