In response to many of the questions I have received from constituents regarding the EU Referendum result, I have sought to compile a list of answers to some of the most Frequently Asked Questions.
Although I personally campaigned for Britain to remain in the European Union, I accept the democratic outcome of the vote on EU Membership and would like to assure residents that I will work hard to ensure that our region and the United Kingdom continues to thrive.
Will I have to buy a new passport?
David Cameron said in his resignation speech on Friday there would be no initial change to the way people travel.
The European Union itself does not issue passports, but European Union member states passports share a common format. The holder of an EU Passport is subject to the right to ‘freedom of movement’ within the 28 member EU states.
Because the UK will remain a member of the EU for as long as it takes to negotiate the exit deal, such passports will be valid over that period - so there is no need to worry if you are travelling this summer, for example. However, following the UKs departure from the EU, new ‘UK’ passports will likely be phased in.
Will my EHIC card still work?
The European Health Insurance Card (EHIC) entitles travellers to state-provided emergency medical treatment within the EU country they are visiting.
It works in any EU country as well as Switzerland and the European Economic Area (EEA) countries Norway, Liechtenstein and Iceland.
Certainly, it will continue to work for as long as the UK is in the EU - at least as long as Article 50 negotiations take.
After that, it is possible that the UK will have negotiated a deal to retain preferential access to the single market, which would mean the continued use of EHIC.
Alternatively, the UK may negotiate another agreement for healthcare provision such as those currently in place with Australia and New Zealand, under which visitors can receive free urgent treatment.
Will there be a Second Referendum on our Membership of the European Union?
Downing Street has said that a second Referendum on the UK’s Membership of the European Union “not remotely on the cards” - the UK will leave the EU, but this is not to say that there will not be future referendums on the terms of our exit from the European Union, as has been suggested by some senior politicians.
What is Article 50 and how does it work?
The term ‘Article 50’ refers to a section of the EU’s Lisbon Treaty that gives guidance on, and allows for a member state to leave the European Union. To activate Article 50, Britain would need to formally notify the European Union that it is leaving - the Prime Minister would do this.
Once article 50 has been invoked, it starts a two-year negotiation period within which Britain should negotiate both its terms of withdrawal from the Union, and the terms of its continuing relationship with the EU and the remaining 27 member states.
The negotiations on the terms of our departure would include things like trade tariffs and freedom of movement between Britain and the remaining member states. All negotiations will take place without British representatives present, and be agreed with a 'qualified majority' from the remaining states.If the two-year period ends and Britain has not settled trade agreements, we would lose our access to tariff free trade with Europe be subject to trade tariffs set by the World Trade Organisation.
I am an EU National or overseas citizen – will I have to leave the UK?
Yesterday in the House of Commons, the Prime Minister gave reassurances that between now and the UKs formal departure from the European Union, no EU citizens living in the UK will have to leave. This is the same for British Citizens living abroad.
However, the UK will need to come to an agreement with the EU regarding the movement of people during the forthcoming UK-EU ‘Brexit’ negotiations.
Are there economic consequences of leaving the European Union?
In recent days we have seen a number of immediate economic consequences from the result of the referendum. In response to these, the Chancellor and the Secretary of State for Business have been holding talking with employers and the finical markets to try and stabilise the UKs economy which has been downgraded from an ‘AAA’ to an ‘AA’ rating with ‘a negative outlook’.
I understand that currently, this means more for the city than it does for local residents. However, the UKs decision to leave the European Union has uncertain, long term, consequences which may not be felt until we formally exit the European Union.
Therefore, to avoid speculation, I will share what has changed in the short term:
- The value of the pound has fallen against the US Dollar and the Euro, meaning that you get less for your money if you are exchanging currency to go on holiday. Earlier today, the exchange rate has risen slightly.
- Some Investors have seen the value of their portfolio’s fall and across the globe, $2 trillion dollars has been wiped off the stock market.
- The petrol retailers association has said that petrol prices will rise between 2p-3p per litre by the end of the week.
- The UK’ credit rating has been downgraded.
So what has stayed the same?
- No tax laws or rates have changed following the referendum.
- Bank deposits of up to £75,000 are still protected by the Financial Services Compensation Scheme
- Cash Machine services continue to be topped up.
- Interest rates remain at 0.5%
Will we still have access to the single market?
The UKs sustained access to the single market will be dependent on the outcome of the negotiations with the EU. Whilst the UK could continue to trade with the single market following an EU exit, we do not know on what terms that trade would take place.
How long will it take the UK to actually leave the European Union?
Once Article 50 is invoked by the Prime Minister, two years of negotiations will follow with the European Union after which the UK will formally leave the European Union.