The World In A Week – Not Plain Sailing
Brexit tensions have managed to hit the headlines once again. It was inevitable that the devil would be in the detail and a particular article within the Brexit deal could leave the UK vulnerable.
Article 10 is causing consternation within Downing Street, as there is a risk that an interpretation of the clause could mean being caught foul of the European Union (EU) State Aid rules. This has meant overriding elements of the withdrawal agreement to placate legal threats from Brussels. It does mean the new bill will have to be voted upon which may open the door for rebellious Conservative MPs to act on their grievances. The waters on which to navigate this path have become extremely choppy indeed, meaning we face yet another uncertainty in the saga of our exit from the EU.
Uncertainty has also been hinted at by Chancellor Rishi Sunak, who has raised the possibility of a delay to the autumn budget. Mr Sunak has requested production of official economic forecasts, which are needed in order to prepare for the budget. What is unusual though, is Mr Sunak asked for these without outlining any tax or spending plans, which are needed in order to call a budget. This has left the door open for a deferment of the autumn budget, which would seem sensible as making any plans when coronavirus cases are on the rise makes any economic forecasting almost impossible to calculate. It is likely the budget announcement will be delayed until the spring but will need to be set before the new financial year in April 2021.