The Institute of Chartered Accountants of Scotland (ICAS) asks Twenty Questions on Brexit EU Refrendum to its Political Leaders-What Happens Next?

From the UK’s Finance Leaders to Our Political Leaders – What Happens Next?

Business and trade

1. What immediate measures will the UK Government take to attempt to minimise the impact of Brexit on the UK economy, British jobs and the efforts to restore the public finances?

2. When will the emergency budget promised by the Chancellor take place?

3. How will the Government help to continue to attract foreign direct investment, given the uncertainties which now prevail?

4. What trading arrangements and tariffs will the UK be able to negotiate with the EU and with other countries across the world, and how long will these take to agree?

5. What arrangements will the UK Government put in place to support companies if they find themselves in financial difficulties as a result of Brexit and how will they support these companies and their workers?

6. How will the UK Government change its policies on immigration and what will that mean for UK businesses and their access to skills and manpower, and for multinational companies and international organisations based in the UK with multinational teams?

7. Will the UK Government need to change workers’ rights and environmental protection?

8. Might the UK Government now selectively support UK companies which EU state aid rules have hitherto prevented?  Would our trading partners see this as unfair competition and seek to retaliate in some way?

Bridging the policy gap

9. Under Article 50 of the Lisbon Treaty, when will the UK Government formally notify the European Council of the UK’s intention to withdraw?

10. On what date does the UK Government think that Britain will no longer be a member of the European Union?

11. How will the transition process work in practice and what will Government do to minimise its impact on business and the economy during this transition period?

12. How will the UK Parliament pass the necessary legislation to facilitate a departure from the EU, when the majority of MPs seem to favour staying in the EU?

13. How does the UK Government intend to address further constitutional uncertainty which is almost certain to now emerge as regards the position of Scotland within the UK?

14. How would the repatriation of powers from Brussels be handled between Westminster and the devolved Governments?  Will the recently agreed Fiscal Framework need to be amended to fund the exercise of such new powers cascading from the EU back to the UK and devolved Governments?

15. What will the UK Government do with its new-found freedom from EU legislation and regulation? What new policies would it follow?

Taxation

16. The UK has always had primary control over direct taxation, but will it be more inclined to “go its own way” and ignore European and international convention and initiatives outside the EU?

17. Will the UK Government change its approach to VAT and VAT rates, freed from the restrictions imposed by the EU and, if so, what changes will occur?

18. If there is an emergency budget, which taxes will increase and if significant sums are required does this mean the end of the triple lock on income tax, VAT and national insurance?

Business and accountancy

19. What will be the impact of Brexit on UK Government policy in other areas which impact British business and the accountancy profession such as: Anti-Money Laundering; Data Protection; Competition; Financial Services; Harmonisation of Product Standards; Consumer Rights; Pensions?

20. In areas of accountancy, what new policies will follow? Will it be inclined or persuaded to depart from International Financial Reporting Standards (IFRS) and re-establish UK Generally Accepted Accounting Practice (UK GAAP)?  Will the EU Audit Directive and Regulations continue to be implemented as planned, or will some aspects be reversed?