Budget to set the tone for post Brexit Economy
9 November 2018
Following the Budget, negotiations restart in Brussels
As negotiations restart in Brussels, the Chancellor pledges additional departmental funding to prepare for Brexit and speculation around the Irish Backstop continues to dominate the UK media
During last week’s Budget, businesses were offered temporary breathing space from Brexit uncertainty with some pro-enterprise announcements. Whilst the Chancellor reiterated his belief that a deal with the EU will be secured, he also announced £500 million of additional funding to bring the government’s total spending on Brexit preparations to over £4bn since 2016.
As asked for in the CBI’s Budget Submission, the CBI will continue to highlight the importance of having a one stop shop set up for business, so firms can access vital advice needed to prepare for the UK departure from the European Union. If you have suggestions on how the CBI should be influencing the government’s spending on Brexit preparedness for businesses, please speak to email@example.com
Away from the Budget, Brexit uncertainty continues to effect business. In the CBI’s recent survey on business planning for Brexit, over 80% of members say Brexit has had negative impact on investment decisions and 39% will trigger further contingency plans if there is no clarity by November.
The need to prioritise economics over political ideology is vital to ensure a cliff edge in March 2019 is avoided. Negotiators must seek a compromised solution on the backstop to break the current impasse. Agreeing a backstop will allow negotiators to move on to the crucial discussions on what the UK and EU’s future trading relationship will look like. Agreeing the backstop will also remove the cliff-edge by providing the legal framework for a jobs first transition that gives certainty to citizens on both sides. Going forward, the CBI will continue to engage with backbench MPs by providing evidence from the factory and office floor on what no deal will mean for MPs local constituencies.