The snap elections held in the UK have not helped in any way to lessen the ambiguity being faced by the business fraternity in the nation or its overseas business allies. The hung parliament has, in fact, increased the sense of uncertainty as the nation will now be led by a coalition government.
More than 800 Indian firms and the business fraternity in the UK are keenly awaiting the Brexit strategy of the new UK government, especially the policy for EU single market and customs union.
It has now been estimated that with the support of the DUP that has assured a ‘confidence and supply’ to the Tories, the UK government will now be able to steer ahead with the already delayed speech of the UK Queen in the House of Commons. This speech outlines the laws that the government seeks be passed in the UK Parliament, as quoted by The Hindu.
The backing of the DUP to the Tories will ensure that it will sail through confidence motion in the UK parliament as well as fiscal policies and budget. However, this has done little to remove the air of uncertainty in the businesses in the UK as a survey of the Institute of Directors in the UK for business leaders’ revealed that the confidence levels have lowered after the elections.
The Tories have always been divided on the issues of Brexit and the fact that two senior aides of Theresa May had resigned after election results gave a boost to the Tories in favor of soft Brexit. There are high chances now that UK retains its EU customs union membership given that its coalition partner DUP has always given top priority for having friendly border sharing with the Republic of Ireland.
Post-snap elections in the UK, the voice of the business fraternity in the nation have become more vocal. Harvard Kennedy School of Business has highlighted in its survey that small and medium scale business in the UK are vehemently opposed to customs control and higher tariffs bearing drastic adverse impact on their competitiveness and costs.
Indian business fraternity in the UK will welcome a soft Brexit as it gives high priority to its talent pool and tariff-free access to the EU. However, UK’s approach to the remaining world will also be keenly looked out for.
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