‘Breakthrough’ deal agreed in Brexit talks

By Kieran Drew
In December 8, 2017
On News
Comments off
380 Views

Prime Minister Theresa May has struck a last-minute deal with the EU to move Brexit talks on to the next phase.

Here are the key issues that have been agreed:

  • Guarantee that there will be “no hard border” between Northern Ireland and the Republic maintaining “constitutional and economic integrity of the United Kingdom”
  • EU citizens living in the UK and vice versa will have their rights to live, work and study protected
  • Financial settlement which is “fair to the British taxpayer”

However, despite this, the pound has failed to rally against the dollar despite progress in the UK’s effort to begin post-Brexit trade talks. This response may come as a surprise given just how significant today’s agreement is but it’s worth noting that this has been on the cards for the last couple of weeks and it was in both sides’ interest to get this done today.

It is also worth considering that if the two sides were unable to reach an agreement, then the downside in the pound may well have been far greater.

Sterling has been the big casualty, in value terms, since the UK voted to leave the EU in June last year.

The weakness in Sterling has been the core reason for the rise in inflation during 2017. The cost of imported goods has increased and has been passed on to businesses and consumers alike.

This agreement and mutual commitment to a transition should bring cheer to businesses, which should support confidence and trade. It remains to be seen when negotiations step up next year what will be agreed around future trade relationships with the EU.

Businesses will be keen to learn what leaving the EU will mean for regulation, customs, hiring, standards, tariffs and taxes.

The UK government and the European Commission must now provide answers and do everything possible to ensure vibrant cross-border trade between the UK and EU countries can continue.

Comments are closed.

Statement

Redwood Financial Family Wealth & Estate Planners Ltd is Directly Authorised and regulated by the Financial Conduct Authority. FRN number 774469.

Subscribe to our free monthly Wealth Management update.

Disclaimers

The Financial Conduct Authority do not regulate, Will Writing, Buy to Let Mortgages, Auto-Enrolment, Tax Advice and Estate Planning. Your capital is at risk. Investments can fluctuate in value and investors may not get the amount back they invest. The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK. https://register.fca.org.uk/

Contact us

Telephone: 01489 877547
Email: info@redwoodfinancial.co.uk

Company information

Redwood Financial Family Wealth and Estate Planners Ltd Company Number: 08926661
Registered Office Address: Wellesley House, 204 London Road, Waterlooville, Hampshire,