A momentous decision for the UK and EU…
The momentous decision taken on the 23rd June has not only sent shockwaves through the political and financial worlds; it has stunned the people of the United Kingdom and clearly shown how little anyone has thought about or understands the true implications of Brexit.
Once the initial furore dies down I am sure there will be a period of relative calm and stability before the true implications of the decision are understood.
Many event suppliers regularly work in mainland Europe and further afield. At CT we have offices in Holland, Germany and Spain. The massive simplification of VAT and the elimination of customs controls at borders within Europe has made our business very much simpler since we started trading 30 years ago.
Whatever we may think about the competence of our leaders and politicians, it seems hard to believe they would return us to the complexities of the 80’s and early 90’s with carnets, customs declarations and potentially the need to register for and pay VAT in each different EU country.
Whilst we can undoubtedly deal with whatever additional ramifications there are, these will add costs and further administrative burden. Crucially however, and unlike carnets in the past, our European neighbours will NOT be saddled with these costs and will therefore be more competitive.
If the major corporations who are our clients and pay for much of what we do, relocate their headquarters and decision making to the major cities of Europe, the agencies and production companies that support them will likely follow suit.
The United Kingdom has always been the global centre for creative and technical production services – sure there are larger businesses in the US, the market there is huge – but many of the best practitioners in our industry are from here and many leading suppliers are headquartered here. Where we decide to focus our future investment in people and equipment will be heavily influenced by the decisions made during the Brexit process.
I have no doubt our industry will continue to thrive, however the good people of the United Kingdom have certainly not made it any easier for us.