Brexit: How Things Look One Year On

 

It has been just over one year since the UK voted to leave the EU. Even though the country isn’t due to leave the union until 2019, the negotiations between the EU and the UK have already begun. Even so, does it look any clearer as to what life in the UK will be like once it has officially left?

There are lots of news stories circling about what everyday life will be like once the country has departed from the EU. But what do we think life will look like from what we know now? Well, one year since the shock vote, here is what we think everyday life in Brexit Britain will look like.

The Pound Will Probably Suffer

Right after the country voted to leave the EU, the pound plummeted in value. Even though it has been able to increase its value over the past year, it looks like it could take an even bigger hit once Brexit has been made official. Just after the pound recovered from its fall after the vote, it was still at a very low value of just €1.25. That meant that those who exchanged £500 into Euros for their holiday in 2015 would have to spend an extra £68 to receive the same number of Euros in 2016. But it’s not all bad news if the pound does suffer. Sure, it means that Brits will find it a lot more expensive to go on holiday, but people from other countries will find it a lot cheaper to come here. That means British tourism could significantly rise, which would be a great help to travel and tourism companies that have seen a slump in business over the past few years.

The British Job Market Could Significantly Change

 

There is currently a lot of talk about the loss of jobs that will occur once the United Kingdom has left the EU. But this is still all up in the air. Most of the big banks that operate in London have mentioned that they might restrict their UK operations and could move their headquarters to the continent. Some car manufacturers, including Toyota, have also announced that they are considering moving their manufacturing plants. However, some experts believe that leaving the EU might also create new job opportunities in the country. That is because certain EU regulations can cost businesses jobs and they also make it less appealing for business owners to employ people. Some people also believe that reduced migration into the UK will create a lot more jobs, though that it still a very heavily contested point.

The Face Of Industry Could Change

As previously mentioned, car manufacturers have mentioned that they might have to change their operations after Brexit, and there are lots of other industries that are considering their options as well. Many industries, from construction to agriculture, are all going to be impacted by the country’s departure from the union. But, thankfully, the majority of these industries know all the difficulties that they will face and are beginning to prepare their customers. The FMB website has advice to consumers on how Brexit is going to affect skilled workers and the housing sector. Farming associates are already trying to source funding that will be lost after our ties with the EU are cut. But, ultimately, it is important to remember that we can’t be certain as to how the different industries will be affected until after the departure has been made official and once the UK is completely independent of the EU.

 

There Will Most Likely Be A Hard Border In Ireland

Right now there is a soft border between Northern Island and the Republic of Ireland as both countries are EU members. This means that the borders are open and there is no need for passport checks. However, once the United Kingdom leaves the European Union, there is no guarantee that this soft border will remain in place. Many believe that there will need to be a hard border. This means that freedom of movement between the two countries will be significantly restricted and everyone who wants to pass across the border will need to have their passport checked and the correct travel documents and visas in place. There are also some experts who believe that this will negatively affect the Northern Ireland peace process as some Irish groups could call for a referendum on Irish reunification.

 

Universities Could Take A Hit

Right now, there are lots of British students studying in European universities, and there are also many European students now in British universities. However, once Brexit has taken place, all of those students might be forced to return to their home countries. Not only that, though, but tuition fees in the UK could see a significant rise, especially for EU students. It is believed that if EU students are still allowed to study in Britain, then their fees will rocket sky high. It is also thought that British universities will lose important funding that comes from the EU, and many specialist lecturers and staff will have to return home to their EU countries. As a result, many British universities could suffer.

Grocery Prices Could Increase

There is also a strong belief that the prices of goods and services could start to rise once the country leaves the EU. This is linked to the value of the pound. If the pound falls, then shops will have to pay a lot more to stock international products, which will push up the prices for consumers. However, there is one silver lining for consumers after Brexit – it is thought that duty free shopping will be brought back to airports.

So, the jury is still out as to what exactly everyday life in a post-Brexit Britain will look like. Whether it will prove to be a success or failure still remains to be seen. However, if you are sensible with your money, you shouldn’t be hit too bad no matter what happens.

Michael Foote

Michael Foote, founder of Quote Goat, has over 13 years experience working in the finance, insurance and currency sectors, gaining a financial qualification in 2010-2011. LinkedIn Profile

Brexit: How Things Look One Year On

Leave a Reply

Your email address will not be published. Required fields are marked *