Great Britain has voted in favour of Brexit. What happens now? No immediate change is expected today. David Cameron has announced that he will step down as Prime Minister as soon as October 2016 and negotiation for us to leave the EU, which will take a minimum of 2 years, is being left to the new leader.
During the 2 years, we would continue to abide by EU treaties and laws, but we no longer take part in any decision making and any exit agreements must be approved by all 27 remaining EU nations and the European Parliament. The negotiation period can be extended but we will need consent from all the 27 members.
Chancellor George Osborne hinted before the Referendum that if we do decide to leave the EU, he may be forced to deliver an “Emergency Budget”. Rumours are that it would include an increase in taxes and further cuts to public spending. However, this could have been scare tactics to keep us voting on remain.
Decisions will have to be made on trade agreements, both with the EU and the global markets. Changes will be made to our immigration laws as the principle of ‘free movement’ will no longer apply when we are not part of the EU. New policies will have to be drafted for things that were previously governed by the EU, such as the Common Agricultural Policy.
In summing up, at the moment there’s a lot of uncertainty and it is too soon to tell the effect the referendum has on businesses and how long this “Divorce” would go on for. We at Minford are here if you have any worries regarding the outcome of Brexit to your businesses.