With the December 31st deadline for ongoing Brexit talks looming, will the UK and European Union finally see how the Brexit biscuit crumbles?
As of two hours ago (22.12.2020), trucks remain frozen on either side of the border following newly imposed travel restrictions from the UK into European countries as a result of the new strain of COVID-19, which only makes matters worse…
Business associations continue to express worry that companies continue to underestimate the scope of UK’s exit from the EU.
Nevertheless, with or without an agreement, leaving the customs union has significant consequences. Increasing workload is expected across the board as companies face additional legal and administrative work to ship goods. In the future, all goods that are not destined for Northern Ireland have to go through customs. Anyone wishing to trade with England, Scotland or Wales will have to apply for clearance in advance (rule TBC).
Admittedly, December 31st will be the 11th ‘hard deadline’ and the timescale implies that MPs/MEPs would be required to scrutinise and pass the deal in the days between Christmas and Dec-31st. Naysayers believe that this time is insufficient and points towards another band-aid solution that will force yet another extended deadline.
“If a deal will fall apart on inspection, then don’t agree to it,” Steve Baker, former Brexit minister, said on Twitter. “The idea MPs can be bounced into voting for a bad deal in the hope they will then have to support it afterwards is toxic: it would be despicable to do it. So I would not expect the government to try.”
If your business is heavily involved in trade you may find you more working capital to cover the longer supply times and with changes to the HMRC preferential creditor status options are becoming slimmer. We have worked with a couple of businesses in the last month to secure ongoing funding and cover any adverse impact of Brexit. If you would like to explore your options on how to better equip your business, let us know. We know who to approach and how to structure it, so feel free to reach out for a virtual coffee.
“If a deal will fall apart on inspection, then don’t agree to it,” Steve Baker, former Brexit minister, said on Twitter. “The idea MPs can be bounced into voting for a bad deal in the hope they will then have to support it afterwards is toxic: it would be despicable to do it. So I would not expect the government to try.”
