THE Chancellor’s presentation of June 27 hoped to provide reassurances to the markets over the financial stability of the economy in the light of ‘Brexit’.
It could not come soon enough.
On Friday June, 24, hours after Brexit was confirmed, the statement by the Head of the Bank of England had also outlined a position of financial security.
Both parties were looking to instil confidence into the market in the light of a destabilising referendum outcome.
Uncertainty is a business killer and until the exit is negotiated and implemented it will not go away. Potentially years.
Immediate impacts of the decision were felt in the FTSE index and on exchange rates, let’s hope things settle quickly.
At a detail level people are asking how will this affect me?
One small example: the devaluation of the pound against the dollar will put up the price of oil, which is traded globally in dollars.
So with fuel price increases (up quickly and down slowly) the price of transportation goes up.
If the price of transportation goes up then critically for Warrington, with a strong logistics sector, then margins there are likely to be squeezed.
It’s all about confidence, so we need to stop worrying and get on with business.
Lawrence Bellamy is associate dean at the University of Chester's Padgate campus and writes a regular column for business
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