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Brexit: North East businesses react to Article 50 trigger

Triggering the infamous Article 50, Prime Minister Theresa May formally issued the UK’s leave from the EU today.

Predicted to take two years to negotiate the shape of our island’s trading and economic future, many in the business world expect post-Brexit feeling of uncertainty to continue to cast a shadow over what lies ahead.

We provide a range of thoughts and opinions, from a variety of North East enterprise leaders, to measure regional sentiment towards this historic moment for Britain.

Sean Bullick, Chief Executive of Newcastle NE1, Newcastle’s Business Improvement District

“Our trade connections to the rest of the world must be a priority for the Government when negotiating our exit from the European Union. At NE1 we have already built relationships in the Middle East through the Arab- British Chamber, and in Saudi Arabia, Egypt, Qatar, Germany and in Sweden, to ensure the North East remains at the heart of UK exporting.

We are building on this by making connections in other Scandinavian nations and would like to see reassurance from the Government that existing trade links will be not only preserved but that a framework is put in place that makes it possible for the North East’s world-leading firms to win business across the globe.

Newcastle is an international centre for business, tourism and education, and to ensure this continues we need a step-change in how our infrastructure is funded, so it is fit for purpose and ready for growth. Regardless of the deal the Government gets, Newcastle and the North East need investment in roads, railways, air travel, ports, housing, schools and skills, and we need it sooner rather than later.“

Richard Upshall, serial entrepreneur and Executive Chairman of Stockton-based OES Oilfield Services Group

“I am confident in the future and I am currently ramping up my investments in the UK. We have to solidify our trade deals and enjoy a lower valued sterling to attract investment further from financial and tech companies to use our strongest asset, our people.

Our security, safety, evolved legal system and modern infrastructure all count for so much, so let’s use them and let’s share them, but on our terms. Let’s also take some time to focus on our home, and reap the benefits of special relationships from President Trump through to our Commonwealth brethren.“

Sandra Thompson, incoming North East Senior Partner at EY

“There is little doubt that these will be some very complex negotiations, however with the right will on both sides, there is a way through.

Business will look to politicians and negotiators on both sides to seek common sense solutions that work for both the economy and society. No one will benefit if negotiations break down.

Talking to businesses in the North East, and up and down the country, a strong early signal in the negotiations that both sides are committed to an orderly and phased-in Brexit deal, would go some way to provide reassurances.

Other items on the agenda include the lightest possible customs border to limit disruption to trade, ability to recruit staff and a stable regulatory system between the UK and EU.“

Alastair Wilson, tax partner at Tait Walker

“As the letter signed by Theresa May formally triggers the UK’s exit from the European Union, businesses in our region will be entering into a period of unavoidable change. The next two years will bring clarification of the areas affecting business in our region where the Government can, and cannot, reach agreement with the EU.

However, many commentators do not expect a fully comprehensive trade deal to be reached with the EU within the two year negotiation period. For many businesses, the Prime Minister’s letter signals that the practical impact of Brexit is now under way.

The practicalities involve understanding the potential commercial and staffing implications or additional costs which might arise for a business as a result of a failure to reach comprehensive trade agreements at the end of the two years. This will involve keeping abreast of discussions between Whitehall and Brussels at a level rarely needed before.“

David Cliff, Managing Director of Gedanken

“Throughout these complex negotiations, the government must strike a delicate balance between the necessity of economic stability and upholding, and being seen to uphold, Britain’s new vox populi.

The referendum result was a signal to the government that the needs of the population must be prioritised over the economic interests of a miniscule but powerful cartel of global conglomerates in a democratic and socially responsible society.

The EU, for all its faults, provided some support for growing businesses. Now Article 50 has been triggered, the government should not just look to maintain this support but to improve it, and improve the lives of ordinary people and of those who run small companies.“

Richard Hogg, Managing Director of Jackson Hogg Recruitment

“The kind of deal we get from the EU could have a huge impact on the labour market. Employers want access to skills and the Government needs to recognise this.

While there may be political capital in cutting net migration, whatever deal we get needs to ensure the visas are available so the UK’s engineering, manufacturing and energy industries have access to the professional and skilled employees they need.“

Chris McDonald, Chief Executive of the Materials Processing Institute

“The UK faces a number of challenges with the triggering of Article 50, but it equally opens up many new opportunities, depending on the agreement the Government secures.

The transitional period needs to be as smooth as possible and the Government needs to refocus its efforts into boosting industry and tackling the productivity gap.

We are seeing initiatives such as the Industrial Strategy coming into force and these must be progressed, allowing for continued research and development and tackling skills shortages.“

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