Reports are coming in that Theresa May will announce a cut off date for which EU workers will be allowed to stay in the UK post-Brexit. The daily Telegraph reported a Brexit bombshell is expected this week, with suggestions that EU workers will have a cut off point ‘of around 15th March.
The report highlights that workers coming to the UK once Article 50 is invoked, will not be allowed to reside in the UK under standard EU rights.
The Government are committed to protecting the rights of EU citizens before this date, on the assumption that UK rights are protected reciprocally.
Immigration is already on the decline since the Brexit vote, with figures suggesting 49,000 fewer people came to the UK last year.
GBP/EUR rates fall a cent
The Pound has lost traction this morning, noticeable against the Euro, US Dollar and commodities such as the Australian Dollar. Concerns have been raised for the UK’s job market amid fears that a fall in low paid, unskilled workers could leave a gap in the many sectors that rely on EU workers.
With Theresa May expected to cut off EU citizen’s rights once Article 50 has been invoked, and with a date set for ‘around March 15’, markets are now preparing for an EU-exit around mid-March and as such, the Pound could be in for further falls in the very near term.
NHS bill could rise £1bn a year
The other big market movement today centres around the Government’s decision to make changes to compensation payments, which could see car insurers premiums rise £75. It has also been estimated the NHS could face £1bn in added fees. The change to the “ogden” discount rate is designed to ensure any payouts made fall in line with future inflationary expectations.
The move has been heavily criticised by the media and the ABI (Associations of British insurers) who have previously warned against the move.
If the Government’s plan to cut migrants rights mid-March were to come to fruition, economic indicators may hint towards lower growth, lower business spending and a decline in GDP. Further Sterling weakness is to be expected in my opinion with GBP/EUR rates back under 1.16 within the next week.