Brexit could cause huge new costs for British businesses, with some industries facing additional costs of up t0 20%, according to a leaked government analysis. Sky News has published new figures from a government report looking at the cost of Brexit, which BuzzFeed News previously reported on elements of. The newly released data looks at the non-tariff barrier costs that leaving the European Union could cause for UK businesses – everything from diverging regulation to customs checks, though not additional tariffs. Retail and wholesale is hardest hit, the government predicts – with costs potentially jumping from 7% to 20%. Defence, education, and health could see 6-16% rises, while financial services could go up between 5 and 10%. Motor vehicles, meanwhile, may see 5-13% cost increases, with 8-16% for food and drink, and 6-12% for chemical, rubber, and plastic. Meanwhile, The Guardian reports that the analysis predicts that crashing out of the EU without … [Read more...] about Costs could jump by 20% for British industry after Brexit, according to a leaked government analysis
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China’s Huawei has promised to spend £3 billion sourcing tech and services from the UK post-Brexit
Chinese mobile giant Huawei will spend £3 billion over the next five years on procurement in the UK. This means the firm will spend money on anything from chipset IP to financial services from British-based companies. The deal looks good for a post-Brexit UK that needs to prove it’s an important trading partner to the rest of the world. Huawei, the Chinese smartphone and telecoms giant, has promised to spend £3 billion over the next five years on buying technology, intellectual property, and services from the UK. Huawei has described the promised cash as a procurement commitment, meaning it will source anything from chipset IP to financial services from UK companies, both for its UK business and for the group more widely. The announcement comes after Huawei’s chairwoman, Sun Yafang, met with UK Prime Minister Theresa May in Beijing at the end of January. Huawei isn’t revealing much detail on … [Read more...] about China’s Huawei has promised to spend £3 billion sourcing tech and services from the UK post-Brexit
Philip Hammond says Brexit will only mean ‘very modest’ changes to the UK’s relationship with the EU
Chancellor Philip Hammond drops biggest hint yet that he wants a very soft Brexit. Hammond told Davos he wants “very modest changes” to the current UK-EU relationship. He called for the “closest possible relationship between the EU and the UK post-Brexit.” Pro-Brexit Conservative backbenchers are becoming increasingly frustrated with the government. LONDON – Chancellor Philip Hammond has made a significant intervention in the Brexit debate by calling for only “very modest” changes to Britain’s current relationship with the European Union. Speaking at the World Economic Forum in Davos on Thursday, the chancellor called for the “closest possible relationship between the EU and the UK post-Brexit” in a speech that will likely rile Conservative backbenchers. Brexit “will not be reversed,” Hammond insisted. However, he hinted at a UK-EU … [Read more...] about Philip Hammond says Brexit will only mean ‘very modest’ changes to the UK’s relationship with the EU
JD Wetherspoon boss Tim Martin cites Warren Buffett and attacks anti-Brexit organisations for ‘trying to fool the public’
Wetherspoon founder and chairman Tim Martin uses company trading update to criticise anti-Brexit institutions. Martin attacked the “highly inaccurate” economic forecasts of international institutions like the OECD and IMF. “Their erroneous views lend weight to Warren Buffett’s aphorism that most forecasts tell you a lot about the forecaster, but nothing about the future,” he said. Wetherspoon saw like-for-like sales increase by 6% in the 12 weeks to January 21. LONDON – Tim Martin, chairman of pub chain JD Wetherspoon has attacked the “highly inaccurate” economic forecasts of international institutions like the OECD and IMF, quoting investing legend Warren Buffett in the process. Writing in the latest trading update for Wetherspoons, Martin took aim at these organisations, as well as the likes of the CBI and BRC, accusing them of “trying to fool … [Read more...] about JD Wetherspoon boss Tim Martin cites Warren Buffett and attacks anti-Brexit organisations for ‘trying to fool the public’
EU warns UK businesses they could be shut out after a no-deal Brexit
A host of industries could be shut out from the EU after Brexit, Brussels has warned. Airliners, chemical companies and water producers may need to relocate their business activity to the continent to avoid being shut out from the single market, according to a memo. Brexit Secretary David Davis had considered taking legal action against the EU for making worst-case scenario contingency plans. LONDON – Brussels has warned a host of industries with operating licenses in the UK that they will have no right to work within the European Union if Britain leaves the bloc with no deal in 2019. The EU sent “be prepared” memos to industries including airliners, seafarers and drugmakers at the end of last year, warning that licenses to operate within the single market will lapse after Brexit, the Financial Times reports. The memos warned that Britain will become a third country after Brexit and some industries … [Read more...] about EU warns UK businesses they could be shut out after a no-deal Brexit