18 July 2016

With at least some of the hysteria surrounding the UK’s Brexit vote having subsided, attention turns to the coming months under the new Chancellor of the Exchequer, Philip Hammond. Said by many to be level headed and risk averse, all eyes will be on the contents of his Autumn statement. He’s already gone on record stating there will be no emergency budget – an act raised numerous times by his predecessor George Osborne during the referendum campaign.

For businesses, Hammond will be seen as the ‘new broom’ at the Treasury. The Financial Times helpfully suggests five points of action for Hammond, which it believes will calm the markets, plus generate goodwill and respect among the electorate. Essentially, the message is don’t over promise and keep things simple. Business leaders will no doubt welcome such a cautious approach, although uncertainty remains; for some in the auto retail community it’s simply too soon after the vote to form an opinion as to whether Brexit will help or hinder business.

The Bank of England’s decision to keep interest rates at 0.5 percent, despite a mountain of speculation that a cut was imminent, has no doubt helped reduce the jitters in the wider financial and retail world. There’s ample evidence consumers held back prior to the EU vote; the acid test will be if they are ready to open their wallets again despite a different combination of political and economic uncertainties looming in the coming months

Iain Dooley

Editor, Agenda

Auto Retail Network

Tags: Brexit, Chancellor of the Exchequer, economy, Philip Hammond, Treasury