2. What is Brexit
Transition?
• Brexit Day: 31/01/2020
• Transition Period: 31/01/2020 -
31/12/2020
• 23 Days to go!
• Slogans like: “Big red bus; get Brexit
done; oven-ready deal”
• Post transition?
3. Transition
Period
• While in transition, the UK remains in both
the EU customs union and single market.
• That means - until the transition ends - most
things will stay the same. This includes:
• Travelling to and from the EU
• Freedom of movement
• UK-EU trade, which will continue without any
extra charges or checks being introduced
4. Why is a
transition
necessary?
• The idea behind the transition period
is to give some breathing space while
new UK-EU negotiations take place.
• These talks will determine what the
future relationship will eventually
look like.
• Brexit negotiations are continuing this
week as the end of the transition
period (31st December 2020) fast
approaches.
5. Assessment of
the impact on
your business
Import/export trade
Getting employees from Europe
Administrative challenge “Honda stop
manufacturing because of backlog on the
port”
Stockpiling because of uncertainty after
31/12/2020
6. Import/Export
• 80% of our food is imported .
• LBC freight-forwarder puts it: “Revoke Article 50 or starve”.
• UK is building lorry parks in anticipation of backlog at ports.
• There will be critical changes and considerations across business functions.
• New challenges emerging including pricing, IT systems and data,
regulations and compliance.
7. Impact on Workforce
• Additional red-tape to get workers from Europe.
• A learning from the pandemic to the farming community is that there is not enough willing
UK workers - there is a reliance on Eastern Europeans for farming and trades.
8. Upward price pressure
• If we take the backlog at the borders, changes to back-office, shortage of labour etc.
• Higher price for consumers.
9. More
competition
• If you are being out-competed by a
European company then you now have a
chance to get back your local patch.
• Local companies no longer need to comply
with EU regulations for local supply. Chances
are that you may now see more local
produce in the supermarkets.
• UK is now free to strike its own trade deals
with other countries.
10. What could
Brexit look like
after the
transition?
• At the end of the transition phase,
there will be two possible outcomes:
• A UK-EU trade deal comes into force
• The UK exits transition with no EU trade
deal
11. Useful Links
• UK Government -
https://www.gov.uk/transition
• Institute for Government -
https://www.instituteforgovernment.org.uk/ex
plainers/brexit-transition-period
• UK Parliament, Commons Library -
https://commonslibrary.parliament.uk/end-of-
the-brexit-transition-period-what-will-change/
• British Chambers of Commerce -
https://www.britishchambers.org.uk/page/pos
t-transition-brexit-checklist
• BBC News - https://www.bbc.co.uk/news/uk-
politics-50838994
• Politico -
https://www.politico.eu/section/brexit/