Election: Business as usual, at least for now
With the Conservative party winning a landslide victory, it’s seems inevitable that the UK will leave the European Union at the end of January 2020.
The Withdrawal Agreement Bill is likely to be brought back for a second reading before Christmas and it is expected to become law in January 2020 due to the Conservative party’s comfortable majority.
The UK and the EU will then need to ratify the Withdrawal Agreement in January 2020 and the UK is expected to exit the European Union on 31 January 2020, after over 45 years of being a Member State.
The UK will then enter an 11 month transitional period until 31 December 2020. But, in reality, nothing will really change during this period and EU law will continue to apply to the UK; the UK will still be part of the Customs Union and Single Market.
During the transitional period, the UK and the EU will try to negotiate the future trade deal that will govern the relationship between them. Whether this is possible during the short time-frame and political tensions remains to be seen.
What all this means is that it is business as usual, at least for now. There is now some certainty for at least the next 12 months, and this will come as a relief to many business that have been watching and waiting to see the outcome of the election and its impact on Brexit.