Brexit: Five things we learnt this week
A round up of this week's biggest Brexit news.
1. A third of large EU companies expect to be damaged from Brexit talks
One in three large European companies have said they expect their business will suffer damage from talks surrounding the UK exiting the EU, according to a report by Deloitte.
The Big Four firm surveyed 1,148 CFOs in the EU, Russia, Turkey Norway and Switzerland, with 37% saying they expect damage and another 50% saying they would be unaffected. Only 5% said the talks would provide their company with gains.
David Sproul, Chief Executive of Deloitte UK, said: "Concerns around regulatory change are the biggest concern, but curbs on workforce mobility and export opportunities are also cited as risks to European businesses.”
2. Tax cuts unlikely as a result of economic slowdown
Chancellor Philip Hammond will have little room to implement large tax cuts in this year’s Autumn Statement according to a report by PwC.
The consultancy firm published new GDP forecasts for next year which considers the potential effects of the Brexit vote. The Big Four firm expects Hammond will be able to spend on some large infrastructure projects, but will not be able to offer any substantial tax cuts.
“It will not be ‘this is the end of austerity’,” said John Hawkswoth, PwC Chief Economist.
“It will be austerity delayed rather than cancelled.”
Source: The Guardian
3. Deloitte will move out of the UK if immigration is restricted
Deloitte issued a stark warning to Theresa May that it will move operations out of the UK if the Government placed tough restrictions on immigration.
David Sproul, Chief Executive of Deloitte UK, said: "We have more than 100 nationalities working for us in the UK. Having a diverse workforce is vital in terms of allowing us to grow and innovate."
He added that if there was a strong crack down on immigration, the Big Four firm would “reluctantly” move some of its work out of the UK.
Source: Sky News
4. Brexit is putting too much pressure on the civil service, say its Chief Executive
The workload passed on to the civil service related to delivering Brexit is "the hardest thing any of us have had to deal with", according to its Chief Executive John Manzoni.
He said: "Along comes Brexit – 90% of your business has just changed," he said. "How do we absorb that? The fact is we need to go back, we need to re-plan, we need to be realistic, we can't do it all – it won't all happen within the existing envelope."
5. ‘Travel tax’ for Brits post Brexit
The EU Commission has said that UK citizens will be required to pay a fee and fill in a document when traveling into EU countries after Brexit takes effect.
The system will mirror that of the US visa waiver scheme and will require Brits to pay a five euro (£4.29) fee as well as completing an online form.
Sir Julian King, the EU’s Security Commissioner, said: "Terrorists and criminals don't care much for national borders. The only way to defeat them is by working together effectively.
"Etias will help do that, by spotting problem individuals and stopping them from coming, we'll enhance Europe's internal security."
However, Labour MP Stephen Kinnock said that the system “is yet more evidence of the hidden cost of Brexit.”
Source: The Independent