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Profit and loss - reaction to Brexit coming in

Views given as to impact on motoring, property and money

John Herring

Reporter:

John Herring

Email:

john.herring@newburynews.co.uk

Contact:

01635 886633

How will you  vote in the EU Referendum on June 23?

VIEWS on motoring, the economy and property following Britain voting to leave the European Union have been coming in. 

Businesses and organisations have reacted to the news, saying how they think the decision will affect the country.

Vodafone, which has its international headquarters in West Berkshire and backed Remain, issued the following statement: 

"The political and economic consequences of the UK's withdrawal from the EU are for others to consider now that the UK electorate has reached its decision.

"In terms of the implications for Vodafone, each of our country businesses operates as a standalone entity able to adapt to a wide range of local conditions.

"As we said before the referendum, we remain committed to supporting our UK customers regardless as to the outcome, now and in the future."

The FTSE 100 dropped 8.7 per cent as Britain woke up to Brexit, with the pound hitting a 30-year low. 

Law firm Irwin Mitchell, which has offices in Newbury, said there could be opportunities in the wake of Brexit.  

Partner at Irwin Mitchell asset management, Richard Potts, said: “The vote for the UK to leave the EU has triggered a big fall in the FTSE 100 as investors react to the result. However, this decline will probably present good buying opportunities for investors.

"The fall in the value of sterling will benefit those companies with large overseas earnings. As many of these companies are large and overseas earnings represent a significant proportion of companies in the FTSE, this boost to earnings could attract buyers.

"Coupled with this is that the economic implications of Leave will take many years to unfold could see a quick recovery from any initial sell off."  

On the impact for Newbury businesses, Simon Fenton, employment law partner at Irwin Mitchell, said: “All employers will have to continue to follow all existing UK laws for two years after the exit notice is served.

"European Directives, such as those regulating working time and holiday entitlement, TUPE, collective redundancies, discrimination and agency workers have been implemented via primary legislation in the UK and the UK Government will have to decide whether to amend or repeal these.

"They will not however fall away automatically, simply because of Brexit. Employers, for example, will not therefore suddenly be able to insist that their staff work over 48 hours per week or take fewer holidays.”

Elsewhere in the business sector, Newbury-based chairman of property consultancy Carter Jonas, Simon Pallett, said: “With a vote to leave, the UK property market is unlikely to escape the wider economic instability which is anticipated over the coming months.

"Looking forward, we firmly believe that fundamentals will continue to drive the UK property market. The UK has one of the largest and most sophisticated property markets in the world and because of this it should remain a magnet for global occupiers and investors.”

And as the UK votes to take the road away from the EU, the AA has issued advice for concerned motorists. 

It said that petrol prices were likely to rise in the period of instability and the pound falling overnight.  

Brits driving abroad must display a GB sign and could be fined for not doing so. However, the AA said it was unclear if the GB Euro-plates will still be valid in the EU.

There will be no immediate effect on British drivers taking their car over the Channel and in terms of roadside assistance on the continent we can assure our members that they will be unaffected. 

Under current EU legislation, anyone who has a car that they insure can legally drive their car in any other EU country and benefit from the minimum level of insurance cover (usually third party) that applies in the countries visited.  Although there will be no immediate change to this arrangement, it could be withdrawn in the longer term.

The EU directive making it illegal to base the cost the cost of insurance using gender as a risk factor could be reversed.

However, the AA doesn’t believe reversal of this directive is likely given that the industry has now adapted well to the new ruling and there would be a significant cost to insurers to do so.

There is no change to travel insurance cover for travellers planning to go to Europe and existing policies will continue to be effective. Similarly, the European Health Insurance Card (EHIC) which provides reciprocal health cover in EU countries will continue to apply.

At present border controls between the UK and other European countries exist but they are likely to become more onerous. While this might lead to greater delays for travellers and increased bureaucracy it may have much greater implications for the freight transport industry. It could also lead to limits on how much ‘duty free’ could be brought home.

AA president Edmund King said: "While the fallout of the referendum result will continue to be discussed, there are lots of points drivers will want to see resolved. As the voice of the motorist we will ensure that their views are heard loud in clear throughout the negotiation process.

"Driving abroad anything can happen but we would like to reassure our members with AA European Breakdown Cover that they will continue to get a first class service coordinated from our control centre in Lyon.

"Fuel prices will be the biggest immediate concern of drivers with the weaker pound and the Chancellor's prediction that leaving the EU would lead to fuel duty increases. We will oppose duty increases and continue to monitor the situation on behalf of our members."

The AA did not take a position on the referendum and declared it was for members to decide.

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