How Does Panasonic’s Departure from the UK signify times to come?

Panasonic announced on Thursday that it would move its European Headquarters from the UK to Amsterdam to avoid ‘potential tax issues’ due to ‘Brexit-related concerns’. Now ordinarily this would not be such a big deal if it weren’t for the true reasons for Panasonic’s quick and decisive exit from the UK. The BBC states that the UK could lower business taxes in order to encourage businesses to set up shop in the UK. This has significant implications for the future as it presents the idea that the UK Government believes the UK is not a desirable location for businesses. This immediately presents Britain as a third world country, and fall from grace many are too afraid to admit. Panasonic also cited concerns over the free movement of goods as a reason for exiting the UK; the uncertainty for businesses with a No Deal Brexit looking more and more likely every day has presented industries with parts coming from all across Europe with huge issues. For example, the automobile industry regularly sources parts from Eastern Europe for manufacture in Western Europe and this relies heavily on the UK’s access to the Single Market. And whilst there is no doubt that the Government could indeed pay for the privilege of access to the Single Market, that sets a dangerous precedent for the UK on it’s position with the EU. The UK becomes a clearly inferior member of the EU from that point on as it has to obey EU regulation that comes with the Single Market – for example Strawberries shorter than 18mm cannot be sold – without having a seat at the table to discuss this regulation which would be highly detrimental to the PM’s position as Leader.

Panasonic has been considering this move for 15 months, because of Brexit-related concerns such as access to free flow of goods and people.

— Laurent Abadie, CEO Panasonic Europe

But going back to why Panasonic leaving the UK is so important in the Brexit process is because it is one of the first major corporations to cite ‘uncertainty’ around the situation to leave the UK, therefore the premise around these negotiations are not the problem but it is the manner that these negotiations take place that are disrupting the economy. Whilst Panasonic are one of the first Multi-National Corporations to leave the UK they certainly won’t be the last as a dangerous precedent for the UK has been set and who knows what kind of chaos could ensue if the Finance Industry leaves Britain…

If you have got this far and enjoyed what you have read, please let me know and I can make more of these posts :)