The possibility of a British exit (“Brexit”) from the EU has topped headlines for many weeks now, with speculation on the implications for UK businesses and the economy being at the forefront of discussion. With a potential “No” vote looming from the referendum due to take place on 23 June this year, many are considering the impact this will have on businesses in the UK.
Much uncertainty shrouds Brexit, with many fearing the possibility of increased legislation as a result. It is thought that small businesses will be the most affected by the possible surge in red tape, while others believe that a Brexit will remove many levels of compliance already in existence as a result of the copious EU regulations.
It is considered that the high levels of uncertainty surrounding a Brexit will have an adverse impact on UK investment and a possible state of “limbo” whilst policy makers scramble to piece together a new legislative framework. Many are concerned that should the UK leave the EU, there will be a considerable impact on trade relations and the possible imposition of import duties on UK goods sold in the EU.
With many issues currently up in the air, it is difficult to predict the exact effect a Brexit may have on UK business, but it is this very feeling of uncertainty that many believe will be to the detriment of business and the economy, at least in the short-term.