“If UK plc is going make a success of Brexit, it is going to need enough runway for a safe take-off”, says Karen Briggs, KPMG's Head of Brexit.
Commenting on the need for a Brexit transitional arrangement Karen Briggs, Head of Brexit at KPMG said:
“To safeguard the British economy a transitional deal of at least three years is not just desirable but necessary. We also face the prospect of a raft of companies pressing the button on their relocation plans if a transition plan isn’t in place by Christmas.
“Brexit is the biggest and most complex demerger in modern history so it will take time. This is not about trying to stall Brexit. It’s a matter of avoiding a chaotic exit that will damage the UK economy.
“Industries including aviation, life sciences, automotive, chemicals, and financial services have all invested in pan-European business models. A sudden exit on 29 March 2019 would rip apart the thousands of bonds that bind the UK and Europe together, rather than carefully unstitching them. Take for example financial services - with the best will in the world, issues like authorisation and portfolio transfer take a period of time to do properly. It is not as simple as renting out a building and moving people.“
“You then have the challenge that every big exporter will need an automated system for trading goods with the EU. Resolving this technical challenge cannot be done overnight. Without the right infrastructure, we could see thousands of lorries being held up - already a frequent occurrence at the Turkey/Bulgarian border.
“If UK plc is going make a success of Brexit, it is going to need enough runway for a safe take-off.”
Notes to editor:
For further information please contact:
Paul Middleton, KPMG Corporate Communications
T: +44 (0) 20 7694 2180
M: +44 (0) 738 725 7543
KPMG Press Office
T: +44 (0) 207 694 8773
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 155 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.
Brexit: A catalyst for businesses to reset their futures.