Deloitte response to the EU Referendum
24 June 2016
Press statement by Deloitte, 24 June 2016 9am
David Sproul, chief executive of Deloitte UK, said: “The British public have spoken and made clear that they see the UK’s interests best-served by leaving the European Union. While the UK has opted for a future outside the EU, Britain remains a competitive, innovative and highly-skilled economy and an attractive place for business. However, as indicated by today’s market volatility we are likely to see a period of uncertainty. Businesses need to ensure they are set up to navigate the immediate risks and impacts of an exit, and have the processes and people in place to manage a period of upheaval.
“Against this backdrop of uncertainty, British businesses must continue to be proactive in finding ways to raise productivity and drive growth. The UK remains a world leader in R&D and a hub for innovation. This will help businesses capitalise on the opportunities and respond to the competitive threats created by the leave vote. They must also play an active role in setting a vision for a new, post-EU environment which is open, pro-growth and delivers prosperity and opportunity for all.”
Ian Stewart, chief economist of Deloitte UK, added: “Negotiating and implementing Britain’s withdrawal from the EU is a huge task. But in tackling it our nation can draw on great strengths. The UK is in the top tier of the world’s most competitive economies. We have strong institutions and a highly skilled workforce.
"Our economy is a magnet for inward investment and enjoys one of the lowest unemployment rates in Europe. The UK faces a period of uncertainty and of great change. But the resilience and dynamism of our economy and institutions will be huge advantages as we start to navigate a prosperous future outside the EU.”
Leaving the EU
What will it mean for business and the economy?
The British public have spoken and made clear that they see the UK’s interests best-served by leaving the European Union.
Over the coming months and years, there will be significant changes to the political landscape. In the short term, the government is likely to set up a cross-departmental task force in order to negotiate Britain’s exit from the EU.
To counteract the immediate negative shock to the economy, it is likely that a number of policy measures will be announced. The government could introduce some pro-business measures in an emergency budget, ease fiscal deficit cuts and temporarily suspend its fiscal rules and the Bank of England’s inflation target.
The medium-term impact on the economy is harder to assess and will depend largely on the pace and success of the government’s negotiations with the EU and on future access to the single market.
In the longer term, economic activity will be determined by a combination of the nature of the UK’s post-exit trade relationship with the EU and its ability to exploit its newfound freedom to forge individual trade deals with emerging markets outside the EU.
Are you Brexit ready?
Helping you navigate through uncertainty
The UK vote to leave the EU is the first of its kind, signifying the start of an untested negotiation process with unknown consequences for individuals and organisations.
What does this mean for your business? Are you ready to adapt quickly and identify new opportunities?
To accelerate your thinking and help you navigate your way through uncertainty, we have developed a three-stage approach, which is modular and will be tailored to your needs. Our approach will help you to:
- Explore the impacts on your organisation
- Identify specific risks and opportunities
- Develop a strategic response
- Execute at pre-defined trigger-points.
Swiss Tax Blog
UK leaving the EU - direct and indirect tax implications
In the short term, the vote in favour of leaving the EU will have little, if any, immediate impact on indirect or direct taxes. Few changes are likely to occur while the secession negotiations take place. Following a negotiation about exit terms, the UK’s approach to taxation could diverge from the current position.
The Brexit will provide numerous challenges and opportunities for the different industries and sectors of the Swiss economy that have to be analyzed and dealt with. Swiss companies are well advised to analyze the potential impact of Brexit on their business and in their planning, both short and long term and to adapt their strategies as needed.