BREXIT News update 18th July 2017

From now on until Britain has left the EU, CPA are going to post regular blogs for the comments we have seen in the press and elsewhere about Brexit, which is perhaps the most momentous event that will happen to the UK for a very long time and will have long-term implications for every citizen living in this country for good or ill. We aim to be balanced in our reports which will be divided into three categories;

  • Category 1 – Positive comments on Brexit
  • Category 2 – Negative comments on Brexit
  • Category 3 – Neutral comments on Brexit

We posted our first blog on 12th May 2017 (CPA Brexit blog on 12/5/2017)
We posted our second blog on 16th May 2017 (CPA Brexit blog on 16/5/2017)
We posted our third blog on 17th May 2017(CPA Brexit blog on 17/5/2017)
We posted our fourth blog on 22nd May 2017(CPA Brexit blog on 22/5/2017)
We posted our fifth blog on 26th May 2017(CPA Brexit blog on 26/5/2017)
We posted our sixth blog on 2nd June 2017(CPA Brexit blog on 2/6/2017)
We posted our seventh blog on 16nd June 2017(CPA Brexit blog on 16/6/2017)
We posted our eighth blog on 29th June 2017(CPA Brexit blog on 29/6/2017)
We posted our ninth blog on 4th July 2017(CPA Brexit blog on 4/7/2017)
We posted our tenth blog on 12th July 2017(CPA Brexit blog on 12/7/2017)

Or see all posts referencing Brexit

Please find below our eleventh  Brexit blog which has been compiled today on 18th July 2017:-

BREXIT; POSITIVE COMMENT: On 12th July 2017 in an article by Stephen Cowan in The Times headed “Local government can help business thrive during Brexit” he writes: How does Britain produce the next Steve Jobs or the next Martha Lane Fox? And how do we make sure that as the hottest new industries emerge it is British businesses and British skills that are leading the way?

As our leaders dither and lurch towards a Brexit that will hinder entrepreneurs and damage our economy, and with President Macron making strong overtures to UK-based business, it is local government that must step up.

In other parts of the country we have seen metro mayors leading the charge for their local economies by driving the skills, transport and health and social care agendas. Now local authorities must do the same.

Here in Hammersmith and Fulham we are doing just that. A pro-business council championing inclusive growth, our job is to provide what is necessary for people to take advantage of opportunities. That means raising the levels of skills, ensuring strong infrastructure links and creating a pro-enterprise environment for businesses of all sizes. But it also means designing a borough that people want to work, relax and live in.

Part of this involves standing up for businesses who have felt battered by recent increases in their business rates – set by the government – or for businesses who fear they will lose out when Brexit bites.

So our new industrial strategy will drive the growth of our burgeoning bio-tech, creative and digital sectors as well as supporting smaller businesses and entrepreneurs. This includes creating clusters of innovation in these industries by requiring property developers to set aside part of every new building for affordable, flexible office space. We’re also looking at innovative measures not normally associated with local councils, including a new venture capital trust and business rate cuts for key sectors.

The borough is already home to major global businesses such as GE, Disney and L’Oreal, and we have a strong heritage of successful businesses in media and digital. Our new growth partnership with Imperial College London will seek to boost enterprise as businesses and start-ups work side by side with world-leading academics, translating research into commercial reality.

We hope that this corner of west London will offer an unrivalled challenge – not just to other boroughs, but to the rest of Europe — as the best place to do business. Stephen Cowan is the leader of Hammersmith and Fulham council. 

BREXIT; POSITIVE COMMENT: European judgment enforcement post Brexit By David Asker on 13th July 2017 – In his speech at the annual Mansion House dinner for judges last week, Lord Thomas of Cwmgiedd urged ministers to work faster to ensure that UK and EU court judgments are mutually recognised and enforced after Brexit.

Protecting the UK as an international legal centre – He was very clear that this is essential to protect Britain’s £25.7 billion a year legal industry and its position as an international legal centre. He said that the City and legal profession will suffer without a simple and flexible mutual agreement regime post-Brexit. This is becoming a key Brexit battleground, with remainers and soft Brexiters wanting to ensure businesses trading with the EU are operating on equal terms, with hard Brexiters wanting total freedom from the Luxembourg-based European court of justice.

Interim arrangements – On 29th June 2017, the EU published interim arrangements on applicable law, jurisdiction and enforcement of judgments post Brexit.

The European Commission indicates that current rules with regards to law and jurisdiction will continue to apply to contracts and proceedings in effect prior to the withdrawal date.

The paper also states that current provisions for the recognition and enforcement of judgments should continue as they are up to the withdrawal date.

Currently, enforcement of a judgment against a debtor based in the EU is very straightforward. Enforcement used to be carried out under a EEO (European Enforcement Order), which allows the court to treat the judgment as if it had been issued in their jurisdiction. Since January 2015, an EEO is no longer required. 

Post Brexit enforcement

But what comes after Brexit? The EU paper covers a number of matters that will need to be included within the Withdrawal Agreement, including the:

  • Jurisdiction and enforcement of judgments in civil/commercial matters (Regulation (EU) No 1215/2012 and Regulation No 44/2001)
  • Recognition of judgments in the “European small claims procedure” (Regulation (EC) No 861/2007)
  • European payment order (Regulation (EC) No 1896/2006)
  • European enforcement order for uncontested claims (Regulation (EC) No 805/2004)

It is likely that there will be some procedure in place; the question is how simple and flexible that may be. We do hope Lord Thomas’ plea for speedy action is heeded.

David Asker is an authorised High Court Enforcement Officer and our Director of Corporate Governance.

BREXIT; NEUTRAL COMMENT: In The Morning Account on 13th July, under the heading “Firms are bored with Brexit “It was reported that Recruitment firm Robert Walters has said that companies have become “bored” with the Brexit negotiations and are hiring staff as normal. Robert Walters, the boss of the firm, said there had been strong growth in financial services, IT and small businesses in London, as well as in regional markets such as St Albans and Milton Keynes. The Daily Telegraph, Business, Page: 4    Financial Times   Evening Standard

BREXIT; NEGATIVE COMMENT: In an article in The Times on 14th July, Philip Colins wrote “Remainers need to stop hoping remorse will kick in and start co-operating on a deal to save the country from disaster”. The writer said that the leading advocates of Britain leaving the EU have failed to understand the difficulty of the problem and that “the process is out of control.” Mr Colins, who is clearly very much a Remainer himself summed up his feelings bu saying “It is tempting to tell the people who got us into this mess — Davis, Johnson, Fox, Gove, Leadsom, Grayling, Patel — to get us out of it but they can’t. They don’t know what they’re doing. Their view of the EU is too ideologically narrow and their attitude too complacent and arrogant. If we think we will get any sense out of this lot we can whistle for it.”

BREXIT; POSITIVE COMMENT: In an article in The Telegraph, Bradley Gerrard reported that the UK has the opportunity to become an Independent trading hub after Brexit according to Spanish business leaders in London.    He went onto say that there is an opportunity for the UK to become an independent global trading hub when Britain leaves the EU as stated by the Spanish Monarch to his country’s business leaders in London during a recent state visit.  The Spanish delegation said that the UK is an attractive place to do business, which will help it prosper when it has left the EU and assisted to follow the success of Singapore economies, which benefit from global trade and investing in other countries.

The article quoted Gerard Lopez, president of Spanish IT firm Plexus “There is a role to be played as a quasi-independent.” 

BREXIT; NEGATIVE COMMENT: In The Morning Account on 17th July, under the heading “Hammond warns of investment uncertainty” It was reported that Philip Hammond has told the BBC’s Andrew Marr Show that businesses are holding off from investing in the UK because of uncertainty about Brexit. “It is absolutely clear businesses where they have discretion over investment, where they can hold off, are doing so… They are waiting for more clarity about what the future relationship with Europe will look like,” he said. The chancellor has also suggested that a Brexit transition deal that gives business a cushion of a “couple of years” will be required after the UK leaves the bloc. BBC News.  Financial Times 

BREXIT; POSITIVE COMMENT: In The Morning Account on 17th July, under the heading “Pro-business Brexit predicted to boost economy” It was reported that the EY Item Club has predicted that June’s general election result will lead to a more business-friendly Brexit and a better than expected economic picture in two years’ time. Although its GDP growth forecast has been reduced to 1.5%, from 1.8% for this year, EY Item increased its view of GDP growth in 2018 and 2019 on the assumption that a transition arrangement for leaving the EU is now likely. It pushed up GDP growth for 2018 to 1.3% from its earlier forecast of 1.2%, and to 1.8% for 2019 from 1.5%. The Times, Page: 37. The Guardian, Page: 20

BREXIT; NEGATIVE COMMENT: On 17th July, reporter Alanna Thomas of The Times said that “A half-way house Brexit would let EU immigration continue unchecked.”

BREXIT; POSITIVE COMMENT: On 12th July 2017 in an article by Stephen Cowan in The Times headed “Local government can help business thrive during Brexit” he writes: How does Britain produce the next Steve Jobs or the next Martha Lane Fox? And how do we make sure that as the hottest new industries emerge it is British businesses and British skills that are leading the way?

As our leaders dither and lurch towards a Brexit that will hinder entrepreneurs and damage our economy, and with President Macron making strong overtures to UK-based business, it is local government that must step up.

In other parts of the country we have seen metro mayors leading the charge for their local economies by driving the skills, transport and health and social care agendas. Now local authorities must do the same.

Here in Hammersmith and Fulham we are doing just that. A pro-business council championing inclusive growth, our job is to provide what is necessary for people to take advantage of opportunities. That means raising the levels of skills, ensuring strong infrastructure links and creating a pro-enterprise environment for businesses of all sizes. But it also means designing a borough that people want to work, relax and live in.

Part of this involves standing up for businesses who have felt battered by recent increases in their business rates – set by the government – or for businesses who fear they will lose out when Brexit bites.

So our new industrial strategy will drive the growth of our burgeoning bio-tech, creative and digital sectors as well as supporting smaller businesses and entrepreneurs. This includes creating clusters of innovation in these industries by requiring property developers to set aside part of every new building for affordable, flexible office space. We’re also looking at innovative measures not normally associated with local councils, including a new venture capital trust and business rate cuts for key sectors.

The borough is already home to major global businesses such as GE, Disney and L’Oreal, and we have a strong heritage of successful businesses in media and digital. Our new growth partnership with Imperial College London will seek to boost enterprise as businesses and start-ups work side by side with world-leading academics, translating research into commercial reality.

We hope that this corner of west London will offer an unrivalled challenge – not just to other boroughs, but to the rest of Europe — as the best place to do business. Stephen Cowan is the leader of Hammersmith and Fulham council. 

BREXIT; POSITIVE COMMENT: European judgment enforcement post Brexit By David Asker on 13th July 2017 – In his speech at the annual Mansion House dinner for judges last week, Lord Thomas of Cwmgiedd urged ministers to work faster to ensure that UK and EU court judgments are mutually recognised and enforced after Brexit.

Protecting the UK as an international legal centre – He was very clear that this is essential to protect Britain’s £25.7 billion a year legal industry and its position as an international legal centre. He said that the City and legal profession will suffer without a simple and flexible mutual agreement regime post-Brexit. This is becoming a key Brexit battleground, with remainers and soft Brexiters wanting to ensure businesses trading with the EU are operating on equal terms, with hard Brexiters wanting total freedom from the Luxembourg-based European court of justice.

Interim arrangements – On 29th June 2017, the EU published interim arrangements on applicable law, jurisdiction and enforcement of judgments post Brexit.
The European Commission indicates that current rules with regards to law and jurisdiction will continue to apply to contracts and proceedings in effect prior to the withdrawal date.

The paper also states that current provisions for the recognition and enforcement of judgments should continue as they are up to the withdrawal date.

Currently, enforcement of a judgment against a debtor based in the EU is very straightforward. Enforcement used to be carried out under a EEO (European Enforcement Order), which allows the court to treat the judgment as if it had been issued in their jurisdiction. Since January 2015, an EEO is no longer required.

Post Brexit enforcement

But what comes after Brexit? The EU paper covers a number of matters that will need to be included within the Withdrawal Agreement, including the:

  • Jurisdiction and enforcement of judgments in civil/commercial matters (Regulation (EU) No 1215/2012 and Regulation No 44/2001)
  • Recognition of judgments in the “European small claims procedure” (Regulation (EC) No 861/2007)
  • European payment order (Regulation (EC) No 1896/2006)
  • European enforcement order for uncontested claims (Regulation (EC) No 805/2004)

 

It is likely that there will be some procedure in place; the question is how simple and flexible that may be. We do hope Lord Thomas’ plea for speedy action is heeded.

 

David Asker is an authorised High Court Enforcement Officer and our Director of Corporate Governance.

 

BREXIT; NEUTRAL COMMENT: In The Morning Account on 13th July, under the heading “Firms are bored with Brexit “It was reported that Recruitment firm Robert Walters has said that companies have become “bored” with the Brexit negotiations and are hiring staff as normal. Robert Walters, the boss of the firm, said there had been strong growth in financial services, IT and small businesses in London, as well as in regional markets such as St Albans and Milton Keynes. The Daily Telegraph, Business, Page: 4    Financial Times   Evening Standard

 

BREXIT; NEGATIVE COMMENT: In an article in The Times on 14th July, Philip Colins wrote “Remainers need to stop hoping remorse will kick in and start co-operating on a deal to save the country from disaster”. The writer said that the leading advocates of Britain leaving the EU have failed to understand the difficulty of the problem and that “the process is out of control.” Mr Colins, who is clearly very much a Remainer himself summed up his feelings bu saying “It is tempting to tell the people who got us into this mess — Davis, Johnson, Fox, Gove, Leadsom, Grayling, Patel — to get us out of it but they can’t. They don’t know what they’re doing. Their view of the EU is too ideologically narrow and their attitude too complacent and arrogant. If we think we will get any sense out of this lot we can whistle for it.”

BREXIT; POSITIVE COMMENT: In an article in The Telegraph, Bradley Gerrard reported that the UK has the opportunity to become an Independent trading hub after Brexit according to Spanish business leaders in London.    He went onto say that there is an opportunity for the UK to become an independent global trading hub when Britain leaves the EU as stated by the Spanish Monarch to his country’s business leaders in London during a recent state visit.  The Spanish delegation said that the UK is an attractive place to do business, which will help it prosper when it has left the EU and assisted to follow the success of Singapore economies, which benefit from global trade and investing in other countries.

The article quoted Gerard Lopez, president of Spanish IT firm Plexus “There is a role to be played as a quasi-independent.”

D S Baber
Managing Director