Pound yo-yos as businesses no closer to certainty after no-deal vote
Last night’s vote in the House of Commons to reject a no-deal Brexit in caused the Sterling to jump before falling back this morning.
The vote to rule out a no-deal Brexit in all circumstances was won by a narrow margin, prompting a brief leap for the pound, going as high as 3 cents against the dollar.
However, the lack of a clear way forward has failed to alleviate the concerns of business leaders, with some of the Sterling gains lost in this morning’s trading.
Despite the outcome of the non-binding vote, the UK can still legally leave the EU without a deal in the event of no alternative solution being agreed upon by the planned exit date of March 29.
A survey for the Confederation of British Industry suggested that almost 9 out of 10 firms would back a delay if the alternative is to leave the EU with no deal - a scenario which is looking increasingly likely as time runs out.
Ian Wright CBE, chief executive of the Food and Drink Federation commented: “Parliament’s decisive rejection of a ‘no-deal’ Brexit on 29 March 2019 this evening is an encouraging first step. However, ‘no-deal’ remains the default legal outcome.
“Food and drink manufacturers cannot stop planning for that outcome until the Withdrawal Act is amended and the EU has consented to a UK request for a delay. These steps must now happen very quickly.”
Access free online guidance for North East businesses in the Growth Hub North East's COVID-19 toolkit →