Comprehensive Report: Assessing the Impacts of Brexit on UK Businesses

This report provides an in-depth analysis of the impact of Brexit on UK businesses. It begins with an introduction to Brexit and its implications, followed by a discussion of the findings. The report examines how Brexit has affected various sectors, including manufacturing, insurance, and the fund industry, highlighting challenges such as currency fluctuations, labor market changes, and regulatory uncertainties. The study also explores the impact on trade, supply chains, and the potential loss of business rights within the EU. The report concludes that Brexit will have a significant economic impact on the United Kingdom and emphasizes the need for businesses to adapt to the changing landscape. The report also references the potential for disruption and the need for strategic planning to navigate the post-Brexit environment. The report emphasizes the uncertainties facing the UK economy and the need for businesses to consider contingency plans.

BREXIT IMPACTS BUSINESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Findings and Discussions............................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Brexit signifies short hand method where United Kingdom will take exit from European
Union as it is combination of words Britain and exit. The present report will briefly discuss about
impact on business on basis of Brexit. On basis of referendum as a vote where everyone of
voting age have participated which was on Thursday 23 June 2016 with decisions where UK
could leave or to be in European Union. In this, leave won through 51.9% to 48.1% where
referendum turnout about 71.8% as more than voting by 30 million. As per multiple negative
forecast with reference to imminent economic crisis, there is attainment of growth of 1.8% in
year 2016 and then Germany with 1.9% growth among industrialised and leading nations
through the world. Further, in year 2017, it grew by similar rate of 2016 but at was slow growth
of 0.1% in 2018's first quarter.
Findings and Discussions
The Brexit implications are very far as multiple business are experiencing alterations in
currency effects and labour market. The cost along with availability of certain goods and
supplies might be altered din substantial aspect (8 ways Brexit will affect businesses, 2018). The
compliance with future tariff along with trade requirements where importers and exporters has
presence of measures for purpose of complying with additional administration for repaying its
additional tariffs. The period of regulatory and legal uncertainty as with innovative regulations of
UK must be replaced with law of European union will bring impact on basis of future trade
arrangements. The citizens of EU who are working in UK and in this context if UK citizens are
working abroad might be capable for facing additional need of residence, work and travel. The
supply chain might be impacted with tariff and country on basis of need of origin where its
goods comprises numerous constituents through multiple sources, determination of country of
origin rules might alter (James Graham, 2018).
The funding of EU is likely to be ceased as funding on basis of certain sector might alter
along with administrative requirements. Furthermore, the business will deal with or highly
dependent on cross border transit which might face different additional hurdles. The right holders
would be required for application of separate designs or trademark in UK as it will take exit from
EU. There will be alteration in coverage of existing rights as it is specified as issues on basis of
designs and brand names.
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The manufacturers of British are pulling sharply with reference to investment plan
because of mounting uncertainty with Brexit and growth of fears of global trade war. The
manufacturers of Britain are gearing with difficult autumn and its deadline looms. According to
findings, it had been articulated that impact of global trade tensions had rising fears. It has
presence of significant factor which is holding investments with revealing of new data that hi-
tech machinery along with up-graders of building with huge risk at financial cutbacks. As per
Office of National statistics, spending on assets and projects such as machinery, transport
equipment along with intellectual property decreased by 0.7% in three months till end of June to
£47.5 billion. There is extraction of growth from manufacturers which slowed in month of
August as its lowest level was in July 2016 which dragged downwards from shock which falls on
basis of exports. Thus, it could be evaluated that this sector had suffered fall in results in first 2
quarter of year. The succession of major manufacturing with presence in UK have given warning
that Brexit will create serious disruption on their operations like BMW, Jaguar Land Rover and
Airbus (Rebecca Smithers, 2018).
On basis of insurance industry of UK with impact of Brexit, the UK insurers would lose
for conducting business right in EU and at the end of transition period. Simultaneously, EU
insurers would be loosing right for carrying business in UK and this shows that presence of
written contracts prior and Brexit will be not capable for repaying its claims and acceptance for
ongoing payments on premium aspect after leaving UK from EU. This would be impacting of
£27 billion insurance liabilities along with 10 million policy holders. In EU, there is impact of
£55 billion insurance liabilities along with 38 million policyholders. Conversely, the UK insurers
might be not capable for covering European insurance risks after Brexit with absence of seeking
licences (Alex Hunt & Brian Wheeler, 2018).
Brexit has created various uncertainties on basis of fund industry of UK and its
investment fund managers which are devising and implementation of varietal contingency plans
on basis of scenarios of post Brexit. As various UK based fund managers are using Luxembourg
and Irish undertakings with context of corrective investments in transferable securities along
with platform of Alternative Investment funds for pan European distribution with impact on UK
as domicile fund which is relatively limited, where some evidence of asset managers seeks for
rebalancing operations and for building great presence in EU. The main issue of UK asset
management industry on basis of risk alterations about delegating rules which helps in enabling
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alternative investment fund managers and investment firms for delegating to UK based
investment manager (Brown, Liñares-Zegarra & Wilson, 2018).
CONCLUSION
From the above report it had been concluded that Brexit will be having huge economic
impact on United Kingdom as compared to European Union. The economy of UK is almost
about £13tn comparatively to UK is £2tn as it will be laying special emphasis for long term
impact and does not give guidance with context of immediate disruption through 'no deal'. It has
been shows that, in present era Brexit is in huge dilemma as it had been observed with
manufacturing sector, insurance and fund industry all are facing issues. Due to this aspect, other
European countries are thinking twice to trade with Britain because of high rate of inflation, low
skill sector which highly reliance on workers and high rate of turnover will be affected in
significant aspect. It had shown that EU must considers about welfares of its European citizens
and advantages of free trade of goods along with services among EU and UK business.
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REFERENCES
Books and Journals
Brown, R., Liñares-Zegarra, J. M., & Wilson, J. O. (2018). What Happens If the Rules Change?
The Impact of Brexit on the Future Strategic Intentions of UK SMEs. The Impact of Brexit
on the Future Strategic Intentions of UK SMEs (March 1, 2018).
ONLINE
8 ways Brexit will affect businesses. 2018. [Online]. Available through <https://www.burges-
salmon.com/brexit/>.
Alex Hunt & Brian Wheeler. 2018. Brexit: All you need to know about the UK leaving the EU.
[Online]. Available through <https://www.bbc.com/news/uk-politics-32810887>.
James Graham. 2018. Brexit will have 'worse economic impact on UK than EU'. [Online].
Available through <https://www.bbc.com/news/business-45581056>.
Rebecca Smithers. 2018. UK manufacturers cut spending plans as Brexit fears rise. [Online].
Available through <https://www.theguardian.com/business/2018/oct/01/uk-manufacturers-
cutting-spending-plans-due-to-brexit>.
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