UK_A_Brexit

ACCA is developing a two-pronged strategy to Brexit following the UK vote to leave the European Union.

At a macro level, it is building on its already close contacts with the UK government to ensure members’ views are represented as the government negotiates its departure from the EU, while ensuring that government departments do not lose sight of how the vote will impact on the national economy.

At a micro level, ACCA is all too aware of the need to support its members through a period of uncertainty. Finance professionals will play a critical role in supporting businesses through the changes. They will also be key in helping businesses optimise risk and identify opportunities, such as new exporting opportunities created by the weaker pound.

A recent survey has revealed that ACCA members want the prime minister to act fast to remove uncertainty by beginning negotiations for the UK’s departure. However, Article 50, the process of leaving the EU, will not be activated any time soon, as the UK government weighs up its options.

‘I expect to see a flurry of consultation papers later in the year as the government attempts to gauge business views on the impact of different approaches to Brexit, and we are working to ensure that we have a seat at the table when those conversations start,’ says Anthony Walters, head of policy at ACCA. ‘We will then use the weight of our 80,000 UK members to act as a barometer on those consultations.’

As well as meeting with the newly formed Department for Business, Energy and Industrial Strategy, the Department for International Trade and HMRC to highlight potential implications of Brexit, ACCA is also consulting with the Department for Education (DfE).

The ACCA Qualification is widely recognised as a passport that allows individuals to take their skills across national boundaries. ‘Some firms can struggle to recruit the talent they need, so they quite often look beyond UK borders,’ say Walters. ‘We have flagged this with the DfE; for a long time businesses have been saying there is a skills gap, and Brexit has only exacerbated these concerns.’

Walters also observes that multinational companies could be tempted to set up business elsewhere in Europe if it meant that they could tap into a wider pool of suitably qualified employees rather than having to deal with an added layer of bureaucracy and work visas.

Passporting for financial services is an area of particular concern for ACCA; as it stands, financial services companies based in the UK are free to carry on business across the EU under one system of regulation. Leaving the EU would therefore threaten not just the City of London, but many other major UK cities where financial services are an important part of the economy. ‘If we lose the benefits of passporting, there is a risk that international firms will relocate to other cities, such as Paris, Dublin or Frankfurt,’ says Walters. ‘Financial services are a huge contributor to GDP. We need to ensure the government’s new industrial strategy sets out a clear vision for the sector in the post-Brexit economy.’

In the meantime, prepare for a bumpy ride, says Walters. ‘While initial fears of a post-Bexit recession have subsided, it is still early days. The government will be seeking the expertise of professional accountants as it starts to negotiate Brexit terms. ACCA will ensure the view of members are heard by government as it begins on the long journey of leaving the EU.’

Phil Smith, journalist