FOCUS FEATURE
BE PREPARED FOR BREXIT Brexit
Leaving the European Union (EU) is one of the most challenging issues facing East Midlands companies for a generation and there is still so much uncertainty on what the terms of the final agreement, if there is one, will be. The good news is that here in the East Midlands our
businesses are robust and, due to a large number of smaller businesses being based here, we are responsive to change. We also have lower unemployment than the national average and are the manufacturing spine of the UK. As a region, the Midlands is in a strong position, but for
the Midlands Engine to continue to be successful, the East and West must work more closely together. But there is a danger that businesses are so busy with
current activity that they don’t take the necessary action to prepare for the changes to come. Some of these big changes could be to supply chain access, regulatory rules and potentially changes in customers. It also means that they may not be best placed to take advantage of the opportunities which arise as we exit the EU. A survey conducted by the Chamber’s Brexit Advisory
Group also found that many businesses are yet to start properly thinking about what the wider implications on their current business activity could be. Brexit is complex and there are so many unknowns that
it’s difficult to understand where to start. My advice, and the advice of the Chamber’s Brexit Advisory Group, is to ask yourself three key questions. The first question is: “Have you devoted time to
considering the indirect and direct consequences of Brexit?” There are a wide-range of issues to consider here, including: your workforce and the future skills needed by your organisation; cross-border trade; taxation and changes in currency, intellectual property and contacts. Secondly, ask yourself: “Have we consulted our board of
directors on Brexit?” It’s essential that Brexit is put on the agenda of your board and executive team meetings, so a proper risk assessment and strategy can be drawn up and then followed through. Thirdly: “Have we mapped out our supplier and customer
base?” Here you will want to consider how changes in the UK and EU’s relationship will affect them. Once you have fully mapped out the changes and you have all of the information available, you will then be able to plan for each eventuality. These are key questions businesses should be asking themselves, as is this one: “What are the direct and indirect consequences of Brexit on my business?”
56 business network October 2018 Dr Nik Kotecha, Managing Director at Morningside Pharmaceuticals
‘There is a danger that businesses are so busy with current activity that they don’t take the necessary action to prepare for the changes to come’
- The way forward for our region’s businesses
Dr Nik Kotecha OBE is Chair of the Chamber’s Brexit Advisory Board and is also Managing Director of internationally-renowned Chamber strategic partner Morningside Pharmaceuticals. In this month’s focus feature, he examines East Midlands businesses’ resilience to the possible changes brought about by Brexit and also considers what key questions all businesses should be considering as we rapidly approach the 29 March 2019 leave date.
The four key areas highlighted in the first question posed
are particularly pertinent here, and worth exploring in greater detail.
WORKFORCE CHANGES Freedom of movement is one of the main reasons why the UK voted to leave the EU, but for East Midlands businesses this does present a number of potential challenges. At present any EU citizen is allowed to move to, live in and
work in any member state, which is likely to end at some point after 29 March, 2019. The Government has come to some agreement with the EU that all EU citizens currently here until the leave date may be allowed to stay and work after we leave. However, any EU national arriving after 29 March and
during the proposed two-year implementation period may need to register if they wish to stay longer than three months. It will thus fall upon your business to check they have a right to work in the UK and that they have registered.
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