50 Shades of Brexit

Today, the UK government, acting on the advice of its people in England and Wales, but against the wishes of those in Scotland and Northern Ireland, has sent notice that it will leave the European Union in 2 year’s time. It has triggered the now famous Article 50. Just as in real life divorce, none of the parties involved has any idea what the eventual cost will be and whether life will ever be better again. In future years, we will try to reassure ourselves that it could have been much worse but if we are honest we will have to admit it was painful. It may be that our country will not exist as a United Kingdom at the end of all this. As a nation and as a continent, we are in the trough of the change curve surrounded by uncertainty and reasons to be fearful. Unforeseen consequences lurk around every corner.

Is the uncertainty so essential to the experience? Why is the Government’s Change Management Team (prosaically known as the Department for Exiting the EU) not able to offer a realistic, straightforward and non-partisan description of the essential factors which will frame the divorce? It might also focus on outlining those many things that will stay the same. Hang on though; the need to admit that EU immigration will continue at much the same level as today makes that a bit tricky. But it surely will. The British economy is close to full capacity and we will need the young, hard working eastern European workforce to maintain its momentum and, by the way, pay for my future healthcare. I can already hear the howls of outrage from those that voted for Brexit mainly because they were fed up with multi-consonent, slavic tones in the doctor’s waiting room.

There is much discussion of the cheque that the UK will have to write to secure its freedom. Estimates range from zero to 60billion Euro. The idea that we can leave for free must be fanciful. The EU, like most national economies, is in debt in its own right; some estimates suggest to the tune of 300billion Euro. It is obvious that since the UK has contributed to the debt, then we will have to pay back our share, net of assets. More likely, we will refinance the amount and add it to our own sovereign debt. In the grand scheme of things, the amount involved is not large when compared with UK national debt which is measured in trillions. However, whatever the amount, it will certainly become the source of populist outrage and just maybe voter remorse of which there is currently no sign.

Another dark shade of uncertainty is that surrounding our future trade relationship with the EU. In trying to simplify this, pessimists paint a picture of day 1 of a hard Brexit in 2019 in which the ports of Calais and Dover are choked by hundreds of trucks waiting for customs clearance under World Trade Organisation rules. Has no one heard of the digital solutions which are already in every day use to handle such transactions?

The next 2 years and longer will be a rough ride for the UK and Europe. We could make it just a little less traumatic by replacing some of the politics with some honest communication underpinning well structured change management.

Author: Peter Lewis

Peter is the Managing Partner of SpeedReach Business Transformation Ltd., a UK based consultancy specialising in helping clients to implement business initiatives more quickly and effectively through a proven, structured approach to Project and Change Management.

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