Brexit: Five things we learnt last week
A round up of last week's biggest Brexit news.
Brexit, CAs and the financial services
Andrew Probert CA, a director in EY’s Financial Accounting Advisory Services team, and part of the Big Four firm’s response to Brexit, said the CA network is a “hugely talented pool of individuals”. The government should be encouraged to engage with ICAS members, and CAs with the government, over the next few months and years of Brexit negotiations.
Andrew also highlights that Brexit has provided the opportunity for financial institutions to take time and decide what type of organisation they want to be going forward.
During this period of financial and political uncertainty, Andrew recommends that those working in the financial services industry carry on with business as usual, and remain optimistic about what opportunities the situation can provide.
UK economic indicators show Brexit bounce back
Various economic data released last week appears to show that the UK is defying post-referendum warnings that the country’s economy would collapse in the result of a Brexit vote.
Manufacturers reported a rise in exports to their highest level in two years and Persimmon, Britain’s biggest house builder, said that more people were viewing their new build homes.
The Guardian quoted Nicholas Wrigley, Persimmon’s chairman, as saying: “Customer interest since then has been robust with a strengthening of visitor numbers to our sites compared to the same period last year.”
Chris Williamson, chief business economist at financial data provider IHS Markit, said that the positive figures were mostly down to the “huge policy response” from the Bank of England and the Treasury.
“You can’t say that everyone who was ringing the alarm bells over Brexit was scaremongering because really it was the warnings that triggered those strong policy actions,” he said.
Brexit will not happen before 2020 – former Civil service head
Lord Bob Kerslake, the former head of the Civil service, said that it is likely that Britain will not leave the EU until at least 2020.
Speaking at a Scottish Parliament event, Lord Kerslake said that Brexit presented an “enormous challenge”; one that is “a lot more complex and take a lot more time than people think it will.”
He went on to say: “I think it’s at least five years away, maybe longer. All this talk of it being a two-year process is optimistic."
Source: The Daily Mail
What will happen to UK citizens living in post-Brexit EU?
The free movement of EU citizens across the UK border was, for many politicians and voters alike, a major issue during the lead up to the EU referendum vote.
Now, in post-Brexit Britain, the fate of EU citizens currently living in the UK, and UK citizens living in EU, is clouded by uncertainty. One possible outcome, writes Peter Macnab CA, would be the UK government entering into separate negotiations with each of the 27 member states on the jobs, homes and healthcare of its citizens abroad.
Mortgage approvals at 18-month low
Since July, the number of mortgages approved by British banks fell by 20% according to figures released by the British Bankers Association.
The drop in numbers suggest that house buyers are waiting to see if Brexit will have any effect on house prices.
In contrast, net credit card lending rose in July by £283m, with the amount spent on cards up by 6%, compared to 2.4% in real earnings over the year.
Source: The Independent