Thursday, May 30th, 2019
It’s official. Brexit is now a matter for the next leader and prime minister. On Friday, May 24, Theresa May brought her tenure as prime minister to a close.
“I will shortly leave the job that it has been the honor of my life to hold,” she shakily announced outside Downing Street.
She went on to tell reporters that Brexit is now a matter for her successor, who will have the hard task of finding a compromise among members of Parliament to ensure the UK leaves with a deal. She also openly shared that her failure to deliver on Brexit was a “matter of great regret.”
Brexit “is now for my successor and they will have to find a way of addressing the very strongly held views on both sides of this issue, and to do that and to get a majority in Parliament, as I said on Friday, I think will require compromise,” she said.
The Uncertainty Continues
Ever since Britain held a referendum to decide the future of its membership with the EU the business world has been nervously waiting to see – and feel the effects of – the outcome. In June 2016, 72.2 percent of the British electorate went to the ballot box and placed their vote on whether the UK should remain a member of the EU or leave it.
The vote to leave won by a slim majority of 51.9 percent. Following this result, the Brexit process formally began. Originally, the UK’s departure from the EU was set for March 29, 2019. But that date has obviously come and gone. After much debate and repeated delays, European Union leaders finally agreed to extend the Brexit deadline until October 31, 2019.
How Businesses Can Prepare for Brexit
From the very beginning, business owners have been concerned over what Brexit means for them. The uncertainty over the outcome has made it difficult for companies to know what decisions to make next and how to properly plan. The following guide provides a framework for businesses to help them understand potential issues and how to prepare for possible impacts.
- The Pound – It is possible that the pound could continue weaken against the Euro and USD. You can prepare your business by making sure your ecommerce website has the option for customers to select between different currencies during the checkout process.
- Customs – Once Brexit occurs, you should expect to see an increase in customs from British consumers. This will likely cause British shoppers to try and avoid increased shipping costs and tariff charges. You can encourage consumers to become loyal customers by revising your marketing campaigns and finding new ways to emphasize your services to the domestic market.
- Shipping Costs – More than likely, shipping costs will be a hot topic for the next few years. The key is to make sure your shipping policy planning is flexible enough to quickly adapt to changes.
- Cash Flow – The cost base of businesses will more than likely increase due to currency fluctuations, new customs charges, extra spending on marketing and other factors. Thus, your business’ cash flow may be placed under increasing pressure. It is important to stay on top of forecasting different scenarios, especially for a no-deal Brexit.
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