LONDON (Reuters) – The head of a British parliamentary committee criticised the government on Tuesday for advising firms to arrange for Brexit with out first telling them what to anticipate when the nation quits the European Union.
Nicky Morgan, a lawmaker from the ruling Conservative Party who heads the Treasury Committee, mentioned the government’s recommendation was “extraordinary” given the uncertainty round Brexit for companies.
The government had responded to a report by her committee by saying that companies ought to attempt to perceive how regulatory change would possibly have an effect on their business and to discover potential impacts.
“Firms can hardly begin to understand change until they know what it consists of. Brexit uncertainty for businesses still looms large,” Morgan, who was a supporter of Britain remaining within the EU within the 2016 referendum marketing campaign, mentioned.
Prime Minister Theresa May hopes to clinch a transition deal subsequent month that might hold Britain’s relationship with the EU largely unchanged for round two years after the nation leaves the bloc in March 2019.
But there stays little element on what sort of long-term deal Britain will safe with the EU.
May needs to get as a lot entry as potential to the bloc’s single market for items and providers resembling banking. The EU says it is not going to give Britain that type of deal with out concessions on immigration and the European Court of Justice, that May opposes.
Morgan mentioned with out readability on Brexit, firms would have “no choice but to prepare for the one eventuality that they can understand: the worst-case scenario of a trade relationship based on World Trade Organization commitments.”
The head of a bunch representing Britain’s insurance coverage business mentioned his members wanted to be clear concerning the phrases of the transition now as a result of contracts spanning the date of Brexit had been already being drawn up.
“It is important that when we transition, we know what we’re transitioning to,” Steve White, chief government of the British Insurance Brokers’ Association, mentioned. “Not knowing what the landscape will be like post-March 2019 means businesses cannot plan and some are already planning for the worst.”
Additional reporting by Carolyn Cohn; Writing by William Schomberg; Editing by Alistair Smout and Robin Pomeroy