CPA Bulletin

www.cpa.uk.net CPA Bulletin > February 2019 21 POLICY: 1 February sees the UK less than two months away from leaving the EU. This comes almost three years after the 2016 referendum, tortuous negotiations between the UK and the EU, open warfare in the Conservative party, the worst defeat in the House of Commons for a sitting government ever and a national debate that still invokes passion on both sides of the argument. At the time of writing, it is no clearer now than it was back in June 2016 what sort of Brexit the UK electorate voted for or ultimately what the outcome will be. While a threat from Prime Minister Theresa May that failure to back her deal might result in the UK remaining in the EU could force even the most extreme Brexiteer to support it, the prospect of a no deal Brexit remains real. Although both the UK and EU have said this would be the worst possible outcome, the government is stepping up its preparations for a no deal with the EU doing likewise. In the present circumstances, the direction the UK takes could be one of the following: • The Prime Minister goes back to the EU to try and renegotiate the current deal with another vote scheduled late in January • The renegotiated deal gets voted through Parliament and becomes ‘The EU Withdrawal Agreement Bill’. The UK leaves the EU on 29 March • The renegotiated deal is rejected by Parliament and the UK leaves the EU with no deal on 29 March • The government asks to extend Article 50 and attempts to renegotiate the deal (again!) with the EU • Labour tables another vote of no confidence in the government. If the government loses, this could pave the way for a general election • Parliament forces legislation for another referendum in 2019 - whether this would be on a form of deal with the EU or based on the question of the UK’s EU membership again is up for debate • The government abandons the entire Brexit process and the UK remains a member of the EU under its current arrangements. Whichever way the political discussions take, without the support of the DUP, the parliamentary arithmetic remains stacked up against the Prime Minister. Although the UK continues to get further assurances on the issue of the Irish backstop, this has failed to quell dissenters in the Conservative Party and the DUP. UNCERTAINTY OVER BREXIT CONTINUES TO AFFECT BUSINESS CONFIDENCE December saw an unprecedented move where all five of the main UK business lobbying groups came together in calling for the government to reject a no-deal alternative. Although Chancellor Philip Hammond (allegedly) reassured business leaders following the House of Commons defeat that a no deal scenario would not happen, this has failed to quell concerns. For construction companies, the ongoing uncertainty has forced many to take the issue into their own hands when planning for 2019 and beyond. Despite government remaining committed to a series of high- profile UK wide infrastructure projects, the projections for growth in the sector this year remain pessimistic, mirroring the wider uncertainty in the economy since the referendum. THE GOVERNMENT HAS CREATED A WEBSITE WITH INFORMATION FOR COMPANIES ON WHAT HAPPENS SHOULD WE LEAVE WITHOUT A DEAL The website sets out specific information on the preparations they should make, how it might impact their particular industry and details around the rules and regulations they currently follow and how these might change. Further information can be found at: https://www.gov.uk/ business-uk-leaving-eu ….BUTCOMPANIESCANHELPANDGUIDEEUSTAFF As plans are made, it is worth reviewing how Brexit is likely to impact construction - especially in the workforce. With well documented skill shortages continuing to be felt across the industry, companies need to provide reassurance and guidance to existing EU staff. THEGOVERNMENTHASPUBLISHED INFORMATION FOREUNATIONALSWORKING INTHEUK Under the current Withdrawal Agreement, EU staff and their family members who have lived in the UK for at least five years, up to and including 31 December 2020, are able to apply for UK Settled Status. Under the scheme, if they have been here for less than five years, they can apply for Pre-Settled Status until they meet the full criteria. If the UK leaves without a deal, there will be no implementation period, with the date for assigning status brought forward from 31 December 2020 to 29 March 2019. Companies should assess how many staff are likely to be affected and check they are aware of what they must do to remain in the UK. The Home Office has set up a website outlining the process EU The Brexit Endgame - What Next for Employers?