17 February 2017
Brexit in a page - what do I need to know? Triggering Article 50 and negotiations
January 2017 saw the Supreme Court uphold the ruling that the UK Government cannot trigger Article 50 without a parliamentary vote. During its second…
Triggering Article 50 and negotiations
- January 2017 saw the Supreme Court uphold the High Court’s judgment that the UK Government cannot trigger Article 50 without a parliamentary vote (read our update). During its second reading in the House of Commons, the Brexit Bill received the support of 498 MPs, with only 114 MPs voting against it. The House of Lords are to debate the Bill on 20 February 2017.
- The future of the Bill could however be uncertain as it makes it way through the parliamentary process. David Davis, the Brexit Secretary, anticipates that the Bill will “ping pong” back and forth between the two Houses whilst Dick Newby, the Liberal Democrats Leader in the House of Lords, is confident that the Lords will back amendments to the Bill to defeat the Government and force a re-think.
- Whilst the Prime Minister is certain that Article 50 will be triggered before 31 March 2017, Brexit Secretary, David Davis has suggested that there will not be any triggering of Article 50 by the UK at the EU Summit in Brussels on March 9 and 10.
- Meanwhile the UK Government is hoping to secure at least a £17 billion share of EU financial assets to offset the cost of Brexit. Sir Ivan Rogers has warned that a demand of £45.5 billion could be made by the European Union to the UK.
- The Chief Brexit negotiator for the European Parliament, Guy Verhofstadt, has confirmed that it is not technically possible to negotiate a future trade deal in tandem with the Article 50 divorce arrangements and that Britain will be subject to the European Court of Justice jurisdiction during any transitional deal reached.
Brexit…spotlight on immigration
- Blocks on immigration post-Brexit could cause the UK younger generation to have to remain in work long before being eligible to claim the state pension. Hymans Robertson, actuaries, have reported that the number of workers will fall if immigration is cut, which will leave a shortfall of workers to support the increasing numbers of people of pensionable age.
Brexit…spotlight on real estate
- Areas of the UK that voted to leave the European Union are experiencing a faster increase in house prices than the rest of the UK following the referendum in June 2016 whilst Scotland has seen a fall in prices. However, the director of Home.co.uk suggests that whilst prices have increased, a surge in monetary inflation due to a weak pound means that capital values are going nowhere in real terms.
- The triggering of Article 50 and the negotiation process. How will Europe respond to the UK’s negotiation strategy and suggested terms?
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