Thursday 23rd June 2016 was the date that a Referendum took place to decide if the UK should remain or leave the European Union. More than 30 million people voted and the decision was made to leave by 52% to 48%. The process of the UK leaving the EU has been shortened to Brexit.
The UK joined the EU, known at the time as the European Economic Community, or the Common Market on 1st January 1973. In today’s society some individuals have only ever lived and worked in a UK that has been part of the EU. However the dissolution of this economic union will no doubt have an impact on both business and day to day life over the next few years and beyond.
In the immediate aftermath of the result Britain got a new Prime Minister, the former home secretary – Theresa May who took over after the resignation of David Cameron. She will now lead the UK through the process of officially leaving the EU and all that this entails.
There were some immediate economic reactions to the result of the Brexit vote including a drop in the value of the pound leading to an increase in costs for some firms as well as Britain losing its AAA credit rating leading to a higher cost of borrowing for the government. The stock market also experienced a high level of volatility immediately after the result of the vote, but has since recovered.
Negotiations between the EU and the UK will be on-going until a final deal is agreed. Some are suggesting March 2019 as a possible completion date for this.