Welcome to our Winter 2018 – Corporate Services Newsletter.
So we all wait to see if an exit ‘deal’ can be agreed (at the time of writing we are waiting for the outcome of the ‘meaningful vote’ by Parliament on December 11th).
Meanwhile, businesses continue to try and work out what they should be actioning as part of their Brexit planning. At our recent FD seminars we covered different Brexit considerations in detail and some of the key topics are covered in this newsletter.
The latest big picture from the Office for Budget Responsibility (OBR) is a forecast of relatively stable but unspectacular trajectory for economic growth (1.6% for 2019, 1.4% in 2020 and 2021, 1.5% in 2022 and 1.6% in 2023) – plus a gradual further decline in the budget deficit and in net debt as a share of GDP. Given the lack of any meaningful basis on which to predict the outcome of the negotiations over the future relationship between the UK and the EU, the OBR forecast assumes a relatively smooth exit from the EU next year. A disorderly exit could have severe short-term implications for the economy, the exchange rate, asset prices and public finances though the scale would be very hard to predict, given
the lack of precedent.
Once we have some Brexit clarity, hopefully the well-publicised UK productivity issue and benign wage growth can be dealt with through more investment (helped by the recent increase in Annual Investment Allowance from £200,000 to £1m for 2019 and 2020 in the Autumn Budget).
As always, our team at PKF Francis Clark are happy to advise on any particular concerns you may have.