EU Referendum: Where does the “Brexit” leave the construction industry?
- 24 June 2016
- Construction
We now have the results of the EU Referendum confirmed: the UK has voted to leave the EU, by 52% to 48%. In the immediate, sterling has tumbled and the stock markets have plummeted. The question now is what impact this will have on the construction industry.
There are many factors at play, but the greatest risk is the uncertainty we now face for months and years to come. There will of course be negotiations as to the terms of the UK’s departure, taking up to two years, and transitional provisions easing the UK’s exit from the EU. We don’t yet know however what the outcome of these will be, or the timescale on which they will take place. David Cameron has announced he will stand down as leader of the Conservative party in 3 months’ time, with a new leader and Prime Minister in place before the party conference in October, and that Article 50 (commencing exit negotiations) will not be invoked until then, but beyond that we have no schedule.
Some of the key risk factors for the construction industry are:
The Clarkslegal team are commercial and good to work with. They get what our business needs and tell me what I need to hear.
Construction professionals should not lose hope, however. It is likely that the transitional provisions will be phased, preventing an immediate drain of resources, and the currency and economical position may well stabilise once the initial shock wears off. Even if sources of EU funding are no longer available, there will still be opportunities for international investment through initiatives such as Clarkslegal’s own Commonwealth Environmental Investment Network (www.theceip.com), which up until now have been overlooked.
In the long term, the industry will survive and may even thrive with a greater emphasis being put on training and recruiting within the UK, and drawing on untapped talent and investment from countries outside the EU, to include those within the Commonwealth, benefitting from common structures of legal systems.
Clarkslegal will be monitoring the position and providing regular updates as this new era progresses. In particular, we have excellent Commonwealth and other international links including, for example, through our membership of TagLaw (www.taglaw.com), if you are interested in exploring this avenue. If you have any specific questions or concerns on how the “Brexit” will affect your business or your planned projects, please get in touch.
Keep up to date with the latest tips, analysis and upcoming events by our legal experts, direct to your inbox.
Disclaimer
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.