What is Brexit?

Brexit, a coinage of the terms ‘British’ and ‘exit’ resembles the UK’s withdrawal from the European Union (EU). In the light of which, the UK government invoked Article 50 of the Treaty on EU, thus initiating a 2 year course of action that was earlier about to conclude on 29th March 2019 with UK’s exit but which has been revised now to 31st October 2019, slowing down the Brexit process as insisted by British Prime minister Theresa May.

Hard and Soft Brexit:

The Hard and Soft unofficial prefixes to Brexit are coined by the media for illustrating the potential relationships that will prevail amidst the UK and the EU post-withdrawal. Hard Brexit or no-deal Brexit signifies withdrawal of UK from EU and the European Single Market either with few or no deals at all. This implies that all the trading will be carried out underneath the World Trade Organization’s rules. On the other hand, Soft Brexit resembles keeping hold of membership within the European Single Market along with some liberation in free movement of the public based on EEA rules.

If analyzed from a wider aspect, Brexit will have the following major impact on the United Kingdom depending on how hard or soft Brexit is

Drop in UK’s per capita income

Decline in GDP

Investment and Trade

Effect on higher education and research

Cutback of immigration from EEA (European Economic Area) countries to the UK

Let’s walk through the below consequences with UK’s no-deal exit from the European Union

Preparation for Delays!

Brexit Consequences & The Impact of Brexit on the UK

Fluctuation in Supermarket Prices

Supermarkets being one of the prime victims of the Brexit impact. The EU supplies nearly 30% of food under the category of fresh vegetables and fruits. No deal will no doubt shoot up the prices of these articles. Worst cum worst there could be a hike of 10% in the shopping bills as cited by Mark Carney (Bank of England Governor). With such a panic situation, consumers buying behavior can shoot up and may even lead to food shortage up to some extent. Supermarkets are making hard attempts to stockpile a few essential food articles, though fresh fruit and veggies being an exception.

Additional Formalities while traveling to Europe

Reportedly, amidst a huge number of people traveling abroad, European terrain is highly opted by most of them. Post Brexit implementation, traveling to any member state of the EU will involve strict and precise paper formalities. In contrast, there will be continuous to and fro flight operations from the UK even under no-deal, as ensured by the government and Abta (Association of British Travel Agents).

Visas and Passports

No requirement of visa or passport while visiting countries within the Schengen region until 90 days out of 180 days. Although in case you plan for an extended period of stay, then visa will be essential. Before traveling to this area make sure that your passport has the validity of a minimum of 6 months.

Moreover, before you plan your travel to other EU countries like Cyprus, Bulgaria, Croatia, and Romania, check out what are the entry formalities.

Bank Cards

The government has warned that using your bank cards (belonging to UK bank account) in EU, Iceland, Liechtenstein, and Norway will be en expensive affair.

European Health Cover

In light of no-deal, your EHIC (European Health Insurance Card) will be no longer valid. In such a case buy insurance for health coverage as usual. BBC has covered the impact of Brexit on the EHIC Cards.

For driving in the EU, you must own an International Driving Permit along with a green card provided by your insurer.

The rise in Medication Cost

With already prior fluctuations in medical supplies, a no-deal Brexit scenario can further make the matter worst. Preventive measures are being incorporated to maintain a good supply of medicines and other medical equipment from the EU.

Patients, in this case, must order their stock of medicines well in advance so that it can be timely availed. Even the doctors and medical practitioners are being recommended with the advice to pre-arrange for drugs and medications for cancer detection in order to minimize the workload and tension ahead

Advice for UK residents staying abroad

The estimated number of UK nationals residing in the EU falls in the range of 1.3 million as per the 2017 figures. UK nationals staying in the European Union, EEA or Switzerland are being advised to take necessary measures concerning the no-deal Brexit according to the country where they are staying. Though the process of registering as residents like the rules and deadlines and other paperwork can be country specific.

A note should be taken for the following factors too:

Health

Once the UK withdraws from the EU, UK nationals residing in the EU will face an impact on access to healthcare. The government asserts to go in for health insurance during the process of registering. The same applies to UK students getting their education from abroad.

Pensions

All the eligible UK nationals residing in the EU will continue to receive the benefit of state pension, disability benefits and also child benefits as earlier by the UK government.

Tax

There is no amendment made to the prevailing taxation process. Individuals residing in any country which has a treaty with the UK will be exempted from paying tax in both the countries on the same earning. A country with the initial taxing right will be the tax collector.

Advice for EU Citizens

According to the mutual agreement amidst the UK, EU, Iceland, Norway, Switzerland and Liechtenstein, the EU citizens (and their family members) residing in the UK, will have all their rights protected. As per the current stats, the number of EU citizen residing in the UK is around 3.8 million. In addition, the government has taken initiative in this regard by listing out the necessary things the EU citizen living in the UK needs to carry out timely. Applying for settles and pre-settled status being the crux of that.

The custom border between Northern Ireland and Great Britain

Northern Ireland will be under the UK whereas country of Ireland would remain as a part of the EU. This implies that with a no deal Brexit enforcement there will be a custom border amidst the two, leading to resurfacing of a 30-year-old conflict. As a result, nearly 35000 of commuters will have to confront customs while commuting for their work. This EU proposal has been strongly opposed by Prime Minister Theresa May. Moreover, the UK is Ireland’s second top export terminus.

The increased cost of imported goods

Apparently, with Brexit no deal impact there will be an end in free transferring of goods and rather hike in the cost of imported items from the European Union. As per the existing norms, UK businesses that are a member of EU don’t pay additional duties, custom checks or taxes on the items that are being transported to or from the EU. After the UK’s departure from the EU, all such rules and exemptions will be revised. However, there will be consistency maintained in the tariffs for protecting a few of the industries like agriculture, poultry, beef, lamb and a few of the dairy items. Presently, 80% of imports don’t include any tariff.

Impact on House Value

According to the Bank of England, the UK’s withdrawal from the EU will significantly impact the housing sector. It’s reported that there can be a drop of nearly 30% in the housing cost following the Brexit change. Fluctuations caused by this change has resulted in gliding down of the housing market. Reason being the uncertainty in the economy at the buyer’s end. Ultimately, ‘buyer’s self- confidence and assurance have upper hand in purchasing rather than the actual house price’ – as quoted by the property dealers.

The rise in Mobile Roaming Cost

After the implementation of Brexit, those making use of their mobiles in the EU will be charged quite high. There won’t be any regulation of EU mobile operator charging the UK operators for providing roaming charges. As a preventive measure, the government recommends for turning off the data roaming to avoid any surplus charge.

Brexit – A quick glance

Preparations are all in the high end for dealing with pre and post no deal Brexit at both the UK and the EU forefront. For Most of the MPs don’t stand in favor of a non-deal Brexit, though there exists a point of differences that are swinging across the merits and demerits of the UK departing from the EU in light of Hard Brexit. Few of the members of opposing labor party are demanding yet another referendum, unwilling for UK’s withdrawal from the EU. Others wishing for a rather more revised deal of maintaining the relations of the UK with the EU market, with the acceptance of immigrants too.

There has been a constant surge in demand and support for a revised referendum. There has been an induction of online petitions with whooping 4 million signatures and No Brexit rallies attracting an audience of 1 million demonstrators. A lot of commercial organizations have already started to make a move with other countries. Following this, a bilateral trade agreement has been signed amidst the UK and Switzerland to prevent tariffs if no deal Brexit comes into action.

Brexit being a vote in contrary to globalization. This may make The Unites Kingdom step down from the financial platform, building up a high value of uncertainty across the UK. There has been a constant effort going in to maintain the international associates.