Legal Experts Decipher How Historic Ruling Will Affect Businesses

Legal experts from national law firm Irwin Mitchell have shed light on what a historic High Court Ruling, dictating that Parliament must vote on whether the UK can start the process of leaving the European Union, means for Brexit and businesses.

The decision, which is being appealed by the Government, means that they cannot trigger Article 50 of the Lisbon Treaty to begin formal discussions to leave the EU, without the backing of Parliament.

Prime Minister Theresa May claims that the referendum, approved by Act of Parliament, and existing ministerial powers - mean MPs do not need to vote.

Gina Miller, who brought the case, says this is unconstitutional but Ministers have been given the green light for a hearing to take place, expected early next month, at the Supreme Court.

In his ruling today (THURS) the Lord Chief Justice declared: "The government does not have power under the Crown's prerogative to give notice pursuant to Article 50 for the UK to withdraw from the European Union."

The PM intends to activate Article 50 by the end of next March, following the UK's decision to leave the EU by a margin of 51.9% to 48.1%.

The EU's other 27 member states say that exit negotiations, which are due to last two years, cannot begin until Article 50 has been invoked.

Leading experts at Irwin Mitchell have been monitoring the fast changing political situation and say that the economic shadow cast by the uncertainty over Brexit means that businesses must prepare for what is set to be a fraught and bumpy ride.

Laurence Gavin, Partner and a corporate expert at Irwin Mitchell, said that businesses needed to brace themselves for yet further uncertainty.

Expert Opinion

“The case was going to be appealed whichever way it went, which passes on responsibility for a ruling of huge constitutional and historical importance to the Supreme Court.

“This decision doesn’t really add much to an already fraught situation, but it puts the spotlight on the risk in the UK economy and highlights the need for businesses to have strategies in place to be highly flexible as the Brexit journey may lead them to unexpected places.

“Businesses should not jump to the conclusion that Brexit will not happen. Strategically, the effect will depend on the sector of the economy, so businesses should check how customer requirements will be affected depending on the outcome, and also review supply chains as the economics of international sourcing networks will be affected if we do leave.” Laurence Gavin - Partner

Omer Simjee, an employment partner at Irwin Mitchell, said that delays to Brexit could be good news for EU workers wishing to apply for permanent UK residency.