28.11.2016
Verdict Will Determine Investment Decisions For Businesses
Corporate experts from national law firm Irwin Mitchell are predicting further Brexit-led uncertainty for businesses and the economy in the wake of news of a second legal battle over the UK’s single market membership.
Fresh from the High Court Ruling confirming that Parliament must vote on whether the UK can start the process of leaving the European Union, the British government now faces a possible legal challenge over whether it should seek to retain membership of the single market.
Lawyers will argue that June’s historic referendum asked the public a single question over whether the UK should leave the EU, and did not delve into the more complex issue of economic access.
Uncertainty over the UK's European Economic Area (EEA) membership means ministers could be stopped from taking Britain out of the single market. The opposition will argue that the UK will not leave the EEA automatically when it leaves the EU and Parliament should make this decision.
Prime Minister Theresa May is adamant that Article 50 will be trigged by the end of next March, following the UK's decision to leave the EU by a margin of 51.9% to 48.1%.
Leading legal experts from Irwin Mitchell are taking a keen interest in the rapidly changing political and economic landscape that the UK finds itself in after the country woke up on Friday 24 June to a majority vote requesting to leave the EU.
Laurence Gavin, Partner and a corporate expert at Irwin Mitchell, feels that there will be many more twists and turns ahead and today’s announcement points to further uncertainty.
Expert Opinion
“The announcement of a further legal challenge adds another layer of complexity to Brexit negotiations and is a further obstacle that must be overcome before Article 50 can be issued.
“The legal challenge could potentially change the nature of the parliamentary vote on Brexit, which could now have to include a vote on whether to stay in the EEA single market in addition to a vote on whether to leave the EU. However, this all depends on the success or failure of the Supreme Court appeal which will begin next week.
“The single market allows the tariff-free movement of goods, services, money and people within the EU and any potential decision would be critical for businesses up and down the UK. A ruling would help determine future investment decisions and would provide some much needed clarity against the current backdrop of confusion.
“Currently the only certainty is that the legal process around Brexit will directly affect the economy and we can expect controversy and heated political debate for the rest of the year and beyond.” Laurence Gavin - Partner
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