Lee Davy-Martin, partner at Wilson Wright, explores the fallout post-Brexit and what the future may hold for the UK.
It’s been more than a month since the UK electorate took the decision to leave the EU, and what an interesting month it has been.
We have seen the markets yoyo, a new Prime Minister and Cabinet and the short-term impact of public uncertainty in the future of the UK economy.
The Confederation of British Industry’s latest forecasts show that companies in the UK remain uncertain, with business confidence plummeting to its lowest levels since the financial crisis of 2009.
Sterling has also dropped to a low of $1.30 against the dollar this month and the Bank of England has discussed the possibility of future interest rate cuts, which may include a move to negative rates at some point in the future.
After the decision to leave the EU there were a number of statements, from the now former Chancellor George Osborne, about having to tighten the belt on public finances and increasing tax in some areas, but since his departure Philip Hammond, his replacement, has remained relatively silent about his plans for the economy and taxation other than his generally held view of ensuring that the UK is open for business.
This means that in regards to the future of tax, VAT and other factors we may have to wait until the Autumn Statement later this year for the newly appointed Chancellor to lay out his plans for the future.
Even then, significant tax policy changes may be delayed until the various trade deals and arrangements regarding Brexit are confirmed, which may take two years or more.
While much is still unclear, the evidence suggests that the majority of SME businesses in the UK seem to adopting a policy of business as usual, whilst gathering information about the long term implications.
At Wilson Wright we have taken steps to help clients who are concerned about potential changes as a result of Brexit and would recommend that you speak to a member of our team if you require any assistance or information.
Wilson Wright LLP
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