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Cliff edge avoided but delayed Brexit offers businesses no certainty to invest

Posted by Warwick Business School at 11 April 2019, 23:35 CET |
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Expert comment from Nigel Driffield, Professor of International Business at Warwick Business School.

In the short term the decision to delay Brexit means businesses can carry on trading, the cliff edge has been avoided.

However, nothing has changed in terms of offering business any certainty. The fundamentals of the economy are strong, but too many projects are on hold and that will not change until we know how and when we are leaving the EU and what impact that will have on international trade.

There is still a risk that businesses will look to invest elsewhere, rather than the UK.

It is interesting that the CBI has said this is a chance to reset the debate and "go back to the people" for a second referendum. If the UK does leave, this is just the start of 5-10 years of negotiations and uncertainty.

If MPs cannot agree a way forward, businesses need another way to provide clarity.

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