LONDON, 23 July, 2019 – The UK has a new Prime Minister, Boris Johnson, and with this change of leadership the risks posed by Brexit have become even more stark, cautions Baker Botts’ Brussels Partner, Matthew Levitt.
Boris Johnson has committed to taking the UK out of the EU by 31 October with or without a deal. Concerns about the resulting chaos and uncertainty have seen the pound fall to its lowest level against the U.S. dollar for more than 2 years, whilst the UK Government’s Office for Budget Responsibility has forecast that even a “relatively benign” no-deal Brexit could cause Britain’s public finances to deteriorate by £30bn a year and create a mild recession.
So will Brexit actually happen on 31 October?
“The UK is caught between a rock and hard place. Parliament has consistently expressed its opposition to the UK’s leaving the EU without a deal but so far it has also failed to back any mechanism that would prevent that from happening. The deepening drama will continue to unfold over the coming months as politicians continue to weigh the conflicting imperatives of the referendum result and their commitment to the economic and social stability of the UK. But with compromise increasingly unlikely, the risks of a no-deal hard Brexit are drawing closer,” said Levitt.
“Companies doing business in, or trading with, the UK need to step up their preparations for what this would mean for them: will they be able to operate in the UK and across the EU, will their supply chains be affected, will the regulatory or licensing position under which they operate be affected, will their tax status be affected?” added Levitt.
If you would like to schedule media interviews with Partner Matthew Levitt, please contact Adam Leviton [email protected]
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