Members of the UK200Group of independent accountancy and law firms have today commented on a new Government report which says Britain could face a ‘decade of damaging’ uncertainty following Brexit.

 

New official analysis into how a British exit from the EU would affect the country has found the process of leaving and establishing a new position outside of the Union could take up to ten years.

 

Cabinet Office minister, Matt Hancock, said: “This Government analysis shows that leaving the EU would lead to a decade of damaging uncertainty. The risks to our economy are clear and would leave the jobs and prosperity of the British people dangerously exposed.”

 

The report also says British trade would be forced into uncertainty and would require renegotiations on an individual basis deals with countries that have any outstanding arrangements with the EU.

 

Jonathan Russell, Partner at UK200Group member firm ReesRussell, said:

 

“Let us be clear that Governments are now mere minnows when it comes to the power of big business. If there is a commercial need then agreements will be negotiated and created quickly. Civil servants go on about trade agreements, and it is true many of these have been built up over decades, but much of UK legislation has been built up over centuries and yet they can still introduce new regulations quickly.

 

“The big difference between governments and commercial businesses is that governments worry about problems, whereas businesses concentrate on solutions. If British voters come out in favour of Brexit it should not be an issue, after all the EU has only been around for a short time in the context of UK international trade, and if anything the EU has compromised UK trading agreements and relationships created well before the EU.

 

“Many businesses will be relieved if the USA trade agreement (TTIP) has to be renegotiated, as the one with the EU has significant disadvantages for UK businesses when it comes to creating a level playing field.”

 

David Whiscombe, Director of Tax at UK200Group member firm BKL, said:

 

“We are nowadays inured to general election campaigns consisting largely of half-truths, low cunning and misrepresentation of the other side in an attempt to win at all costs. Maybe that doesn’t matter too much: we get the chance to change our mind ever four years so perhaps no lasting damage is done.

 

“But this is not a general election; it’s an irreversible decision which will be the most important decision in a generation. Yet, in place of the clear honest and objective facts, which they need, voters are getting (from both sides) the kind of tendentiousness and duplicity that gets politicians a bad name; the government’s refusal to allow the other side access to the full facts held by government is particularly despicable. How can we make a sensible choice when no-one is telling us the truth?”

 

Anthony Harris, Chairman at UK200Group member firm Critchleys, said:

 

“The Euro Zone has already gone through a decade of uncertainty, and despite ‘bailouts’ to four different member states there is still little resolution to the underlying problem of differing economies. How will this be resolved? Over the next ten years we will either see various states leaving the Euro Zone in further economic disarray and probable acrimonious break-up, or “ever closer union” will win the day with a politically close-knit core of major states running the Euro Zone economies as one.

 

“These are two prognoses for the Euro Zone, and what would happen to the UK as a member of the EU, but not the Euro Zone on either of these two scenarios? If there were an acrimonious break-up, we would be a strong economy outside the failing Euro Zone, but constrained by the EU in forming good trade deals to maintain that position; we would be pulled down towards the lowest common denominator. Then, if “ever closer union” works for the Euro Zone, we would be dominated by a new economic superpower on our doorstep, which would control our ability to trade with itself and the rest of the world, dooming us to become second-class citizens of the economic world.

 

“So, to the question asked. If Brexit creates a ‘decade of uncertainty’, would that be any worse than the decade ahead being a continuing member of the EU? Some would say that at least a Brexit induced period (most people without an axe to grind seem to suggest two years) of uncertainty would allow the UK to find its own route out of the doldrums as opposed to being held back ensuring that the Greeks, Finns and Maltese all agree on what is best for the UK!”

 

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Established in 1986, UK200Group is the leading mutual professional association in the UK with some 150 offices of quality-assured member accountancy and law firms throughout the UK totalling more than 500 partners who act for business clients and global links in nearly 70 countries. Our member’s contributions reflect the views, questions and answers arising from their 150,000+ SME clients. UK200Group provide services and products that are designed to enhance the business performance of its members. Telephone: 01252 401050 or: 01252 350733, email: admin@uk200group.co.uk or visit: www.uk200group.co.uk.

Disclaimer:

UK200Group is an association of separate and independently owned and managed accountancy and law firms. UK200Group does not provide client services and it does not accept responsibility or liability for the acts or omissions of its members. Likewise, the members of UK200Group are separate and independent legal entities, and as such each has no responsibility or liability for the acts or omissions of other members.

 

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