PwC responds to the Government's White Paper published today on the relationship between the UK and EU.
Phil Brown, PwC senior trade advisor PwC, commented:
"This is a proposal not a deal - the EU's response will be critical to determining where we actually end up.
"But it is a credible proposal which would deal with the majority of manufacturers’ concerns about the need for a frictionless border and keep the Irish border open.
"The picture is very different for services companies. Here the emphasis is on flexibility over market access. This is very significant as services are so vital to the UK economy. Even the most ambitious trade deals have secured only modest concessions on services."
Julia Onslow Cole, head of global immigration for PwC, commented:
"The Government’s proposals aim to strike a balance between making the UK as open as possible for business, whilst helping to meet its aims for reducing net migration. The offers of visa free travel for business visitors and tourists together with a youth mobility scheme are welcome.
"However, business will be eagerly awaiting the Government’s response to the Migration Advisory Committee’s report on impact of EU migration on the economy which is due in September. Only then will they be able to do detailed planning."
Andrew Gray, head of brexit for PwC, commented:
''The Government has changed its preferred course on financial services. The so called mutual recognition model has been dropped, instead access would be built on improving the EU's current equivalence arrangements.
"There are a number of issues with the EU's current approach to equivalence - most notably that it does not cover key activities such as insurance and deposit taking. Equivalence decisions can also be reversed at short notice and the process can be unpredictable at times. The Government is proposing that these issues are addressed by the EU by covering all key sectors and by making the equivalence process more predictable for businesses.
"Despite this being a credible proposal, businesses should know that there is still a risk of no deal and therefore should continue to plan for this scenario."
At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with more than 223,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.
PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. © 2018 PwC. All rights reserved