Brexit requires Westminster to demonstrate clarity, compromise and collaboration

Fewer than 50 days separate us from 29 March, the date that Britain is formally due to leave the European Union. It has been 22 months since Article 50 was triggered, and Brexit strategising and negotiations with Brussels have taken the nation on a journey that few could have predicted.

Politically, Britain is currently locked in a continued impasse, resulting in a particularly turbulent time. ACCA has maintained that businesses and their employees need certainty.

Whatever the leaving terms are, they simply must address this and attempt to bridge the void that has developed between government and business, and indeed wider society.

It appears that Prime Minister Theresa May and Labour leader Jeremy Corbyn have taken heed of calls for cross-party talk, and we have heard more on the outcome of their recent discussions during debates in the House of Commons this week.

The next course of action arguably remains the biggest issue the country has faced in modern times. Undeniably, there has been an undercurrent of political hostility and uncertainty throughout the Brexit process.

This week, preparations in the event of a no-deal Brexit were compounded when Seaborne Freight, which was awarded a £13.8m contract by the Department for Transport to bring in supplies from Ostend to Ramsgate, had its contract cancelled after a key financial backer from Ireland pulled out.

This lack of clarity is reflected within the accountancy profession. With no withdrawal agreement currently in place, ACCA members are now faced with a momentous task of adequately preparing for the raft of new customs arrangements, breaking existing and long-standing supply chains and potentially beginning from scratch.

We call on the government to put the framework in place to ensure that this period of change is with as little disruption as possible.

The economic picture amid such uncertainty is bleak, as highlighted in ACCA’s latest global economics conditions survey of more than 3,000 accountants worldwide. For the fourth quarter of 2018, confidence in the UK economy fell sharply – by 15 points – and is now at a record low.

The level of uncertainty surrounding Brexit reached extreme levels and is affecting activity and confidence.

Throughout the Brexit process, ACCA has been involved in high level discussions both in Westminster and in Brussels over the protected movement of goods and services, recognition of UK regulatory frameworks and qualifications, and – most importantly – access to talent.

Some businesses feel that they have done as much as they can, through conversations with their supply chains and customers and lenders, discussing the ability to deal with unexpected changes in cash flow, supply or demand, and whether they can help each other.

Some are crossing their fingers, hoping that, whatever terms the UK leaves on, it won’t adversely affect them.

It is important that the government maintains exceptionally comprehensive conversation with business about potential impacts, not just during Brexit negotiations, but going through to third-country trade agreements.

The focus in recent months has been on the practical flow of goods across borders. ACCA’s members will serve as vital advisers here, such as tax agents dealing with customs and excise.

It is also equally important to consider what happens with UK services exports, which the Office for National Statistics revealed are worth £70bn. This includes enabling aspects of the UK-EU trading relationship and other trading relationships to come, such as data transfer and incentives for cross-border investment in technology and software.

Through the EU’s Professional Qualification Directive, members who are EU nationals are currently able to obtain access to relevant regulated accountancy roles in a host EU country with the minimum of barriers, along with many other professions.

With Britain poised to leave the EU’s Single Market, UK nationals may no longer be able to take advantage of this recognition system.

We support any collaborative work between EU and UK regulators and professional bodies to allow the continued movement of professionals between Britain and other EU countries, with the minimum of barriers.

However difficult discussions in Europe are proving to be, it is important that the UK government and, indeed, Brussels maintain willingness to compromise, collaborate, and continue to have open dialogue with business about potential Brexit impacts and opportunities.