This report by Brewin Dolphin reflects on a turbulent week for Theresa May's government. Brexit Secretary, David Davis and Foreign Secretary, Boris Johnson, resigned in response to May's Brexit White Paper, which suggested that close ties to the EU would be retained.
Key points include:
- The UK aims to maintain a meaningful degree of regulatory harmonisation with the EU in order to facilitate frictionless trade after Brexit.
- The UK could conduct an independent free-trade policy with other harmonious nations, or by persuading them to become aligned with the EU.
- The cabinet has agreed that while free movement of people would have to end after Brexit, a mobility framework would need to be established.
- The most negative scenario for investors remains a “no deal” situation which would have a detrimental impact on sterling and prompt retailers to severely underperform.