Further Brexit Delays Could Spell Disaster for Business
As we near the end of the year it appears the urgency to come to a deal for Brexit still isn't in the best interest of Prime Minister Boris Johnson, as further delays continue to come through.
There had been a number of talking points that had been halted somewhat with a hopeful decision to be made in September, following the long delays caused by the coronavirus but it seems many of those talking points have yet to be ironed out. With the risk of a second wave of the virus threatening more delays and a hopeful deadline before the end of the year, it is starting to appear as if any form of a Brexit deal is too far out of the question and a default to the WTO trading terms will be the most likely outcome, but this could spell disaster for many businesses.
Increased trading rates and tariffs could mean that many businesses aren't able to operate in the same way, and with the process taking so long and being so drawn out there's also the issue that there won't be enough time to deliver the information that will be required to make arrangements as soon as possible. This could cause a lag period where businesses aren't able to adjust to the new changes, but also are expected to pay any new rates that may come around from the change to the default WTO arrangement.
This may also have a big impact for online businesses too, as those operating to serve both UK and EU nationals still remain unsure on what may change for them. Whether this is aimed at an online gaming platform like a House of Fun slot machine and how pay-outs occur to even retail and their ability to deliver across Europe and the levy's that will need to be covered.
It's unlikely that there will be an extension to the ongoing period despite the current coronavirus pandemic, and with the end goal so close a second wave of infection is likely to cause postponements either. This really is the last chance for a real deal to be made and it seems that's slipping through the UK's fingers very quickly. There are further concerns as we head towards November too – whilst PM Boris and President Trump have a good relationship, there's also the risk of a trade deal between both the US and the UK being at risk too.
There's a bit transition period on its way and with so many being outspoken toward the current approach – the best thing to do now for many businesses is to prepare for either scenario that could be faced and ensure all measures are in place to cover the worse of the two outcomes too – October 15th will be the date to mark in your calendar as if a solid agreement isn't reached by then, the answer for what the outcome of Brexit will be is solidified and we move toward the end of the transition.