Big Four’s Reaction to the EU Referendum Results

Jun, 24, 2016

It's official. The Leave campaign has won the EU referendum. This is a breakdown of the results...

big four react eu referedum results brexit deloitte kpmg pwc ey brexit eu referendum result infographic - credit to the telegraph

 

  • Leave won 17,410,742 votes | Remain had 16,141,241 votes.

  • Leave secured victory by 1,269,501 votes.

  • Leave won with 51.9%, to remain’s 48.1%.

  • Confirmed turnout was 72.2% on an electorate of 46,500,001.


David Cameron has resigned as Prime Minister after Britain voted to leave the European Union...

Prime Minister David Cameron is to step down by October after the UK voted to leave the European Union. Mr Cameron made the announcement in a statement outside Downing Street after the final result was announced. The PM had urged the country to vote Remain, warning of economic and security consequences of an exit, but the UK voted to Leave by 52% to 48%.


This is what the Big Four Accounting Firms had to say about the EU Referedum Result...

Ian Powell, Chairman and Senior Partner of PwC

ian powell pwc 1“The UK’s decision to leave the EU will have significant implications for businesses and we are already working with our clients and people to support them as those implications are understood. History has taught us that UK business is adaptable and innovative when confronted with new challenges and opportunities. There will be significant uncertainty over the coming months as the detailed political and legal issues are worked out, and business confidence may be impacted. PwC is committed to helping its clients as they adapt to new market conditions and opportunities.” 

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Giles Williams, Financial Services partner at KPMG

giles williams kpmg 1“Although it was well known that the referendum result would be a close call, the leave vote will send a shudder through the financial services industry.  The harsh reality of the probable changes to passporting arrangements and market structure, our clients’ operating models and engagement with the wider economy across Europe will now sink in.  Of course we will see short term volatility which is a natural consequence of a vote of this nature.  The critical issue is how this will play out going forward.”

“The Financial Services industry needs to quickly develop its ‘asks’ of politicians to make sure that financial services can continue to play its crucial role in the wider economy.  It is critical that the negotiating teams fully understand the implications and consequences of dislocating European capital markets, banking, insurance and asset management on the economy both here in the UK and in Europe.  .“In terms of priorities for the economy, the ability for Europe to access London’s well developed markets in insurance, securities and banking is critical.  Equally UK-based firms must be able to continue to provide financial solutions to the market, corporates and individual citizens across Europe and internationally.”

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Steve Varley, UK Chairman EY

steve varley ey 1“We are now entering unchartered territory after the majority of UK voters chose to leave the European Union (EU) yesterday. It’s the first time a member state has left the union, and this means that the consequences are almost impossible to predict.

“With the vote now cast, businesses will need to hit the button on the short-term contingency plans that many have been working on in recent months, while also starting to plan for the longer term. Communicating with staff about any potential employment issues that might arise, including the working and travel rights of European and UK employees, will be a high priority for many. Will these rights still exist in the post-Brexit world? This is likely to be a hotly debated issue.

“Leaving the EU could also have repercussions for Government policy in the coming months. For example, will the Government support certain sectors through subsidies or tax relief? With changes to tax policy possible, companies need to consider their current tax profile and how any new tax policies could affect their holding and financial structures. 

“Above all else, it is vital that the message that the UK is open for business should not change. EY’s latest research on foreign direct investment (FDI) reveals that the UK continued to be the most attractive location for FDI in Europe last year. In fact, 2015 was a record year for the UK, with 20% growth in the number of projects. Businesses will need to work alongside the Government to ensure that this remains the case and to give the UK every opportunity to prosper in the future.

“The UK will also have the opportunity to make new trade deals so it is important that key trading partners are quickly identified and negotiations accelerated. Businesses need to consider where the potential lies for their products and services and act accordingly.

“One thing is certain: Brexit will result in a number of large-scale changes for UK plc – in areas such as trade, employment, regulation and Government policy. Few changes are likely to happen overnight. As a result, businesses now have a prime opportunity to take proactive steps to prepare for the challenges and opportunities that lie ahead.”

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David Sproul, chief executive of Deloitte UK…

david sproul deloitte 1“The British public have spoken and made clear that they see the UK’s interests best-served by leaving the European Union. While the UK has opted for a future outside the EU, Britain remains a competitive, innovative and highly-skilled economy and an attractive place for business. However, as indicated by today’s market volatility we are likely to see a period of uncertainty. Businesses need to ensure they are set up to navigate the immediate risks and impacts of an exit, and have the processes and people in place to manage a period of upheaval.

“Against this backdrop of uncertainty, British businesses must continue to be proactive in finding ways to raise productivity and drive growth. The UK remains a world leader in R&D and a hub for innovation. This will help businesses capitalise on the opportunities and respond to the competitive threats created by the leave vote. They must also play an active role in setting a vision for a new, post-EU environment which is open, pro-growth and delivers prosperity and opportunity for all.”

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Author: Chandni Trehan