Comment on the imminent triggering of Article 50.
Commenting on the imminent triggering of Article 50, Karen Briggs, Head of Brexit at KPMG said:
“Although the UK’s substantial financial contribution to the EU and its status outside the Schengen Area offer the opportunity for a unique deal to be struck, businesses still need to plan for a ‘no deal’ scenario. Companies also need to understand the point of no return beyond which they must invest in contingencies.
“Firms are relying on the Government to deliver a smooth and orderly Brexit. This will be essential in more regulated sectors like financial services, pharmaceuticals and energy. Rather like flying, people will tolerate some turbulence so long as they can trust a predictable system.
“Having spoken to hundreds of businesses over the last few months, we have identified five big issues of concern: Access to labour, additional tariffs and non-tariff barriers, the uncertainty of a closed negotiation process, the potential for a cliff edge situation and the long lead times that come with major legal changes, relocation and revised supply chains.
“Our work shows that banking, insurance and industrial manufacturing are the best prepared so far with automotive, life sciences, plus transport & logistics not too far behind. Of course some firms aren’t yet preparing for Brexit, this could hamper interconnected supply chains.”
Notes to editors:
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KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 13,500 partners and staff. The UK firm recorded a revenue of £2.07 billion in the year ended 30 September 2016. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.