What’s your firm’s Brexit masterplan?

THE UK Supreme Court decided last week that the Government cannot trigger the UK’s exit from the EU without an Act of Parliament.

The UK has yet to give formal notice of its intention to leave the EU, and is unlikely to do so before March 2017 – if the required Act of Parliament can now be passed in time.

Once notice is given, a two year exit negotiation will begin, the outcome of which is unpredictable.

The only certainty for the foreseeable future is uncertainty.

This is, understandably, frustrating for the manufacturing sector and for businesses whether you operate in the Midlands, the wider UK, EU or indeed more further afield.

However, there is plenty you can do now to ensure a smoother transition in the years to come.

For example, many companies are reviewing their loan and other financing agreements to check whether the effect of Brexit – whether it manifests in reduced consumer confidence, slowing investment or a further downgrade to the UK’s credit rating – might put them in breach of financial covenants or commitments.

UK companies are also assessing what sources of EU funding are relevant to them, what the impact of losing that funding might be and how the loss can be managed.

A top level review to assess which EU regulations currently impact the business is also essential for all companies.

These regulations vary from sector to sector, but every company will be affected to some degree. This is proving to be an enormous exercise.

The UK’s regulatory framework has become increasingly entwined with the EU’s and the unwinding process is going to be complex.

For the time being however, it is ‘business as usual’ - at present the UK remains a member of the EU and must continue to abide by European laws and regulations. Chloe Barker is a senior

associate at DLA Piper