The markets have taken a bit of a shock this morning after the surprise Brexit Result. Most of the bookmakers and pollsters were predicting a remain result and so the markets understandably have taken a bit of a bashing. This volatility is being mirrored across the world at the moment whilst everybody digests the magnitude of what has just happened. So, whilst the world of high finance holds its breath, what does this mean for the world of accounting?
Well, the British people have spoken and there’s certainly no way we can go back now. The uncertainty of what Brexit will bring and the added fact that the Prime Minister has announced his intentions to resign, brings even more uncertainty and that’s something that the markets don’t like. To be honest, accountants don’t like it either but we tend to take a more measured view of what will happen. At the moment it really is about holding your nerve and, to coin a well-worn phrase, keep calm and carry on!
There will certainly be tax and legislative changes over the forthcoming months and this will be something that we will be closely watching and making sure that all our clients are kept abreast of how this affects them and how best to navigate their business through the quagmire of red tape that there is sure to be.
Of course, this is not a time to panic and it’s important to remember that we are still a part of the European continent even if we’ve decided to pull away from the union. Brexit doesn’t mean that we’ve severed all ties and, as you will have heard from the Bank of England this morning, the political and financial machine will pull out all the stops to ensure that the British economy stabilises and the markets get used to the idea of the Brexit now being a reality.
The value of the pound is sure to drop during all this uncertainty but it won’t be in freefall forever and the sooner our leaders start to provide the direction that is now needed, the world will react accordingly, the markets will begin to settle and the pound will find its level.
It’s important to remember that with every change comes opportunity and that is certainly something that we at Morgan Reach will be focusing on. Yes, we know the pound will struggle over the next few weeks and we know that there will be changes in the cabinet. We also know that business will be scrutinising their position in the UK and that a lot of UK based businesses may have worries about what lies ahead. Brexit is an historic moment in the history of our islands and history tells us that Britain has enough ability to ride the storm and come out on the other side. We will play our part in steering our clients in the right direction as the political and economic landscape goes through these inevitable changes. We are living in very interesting times!