Could a Brexit ‘flextension’ cause chaos for the UK’s personal finances?

In the past hour, European Council President Donald Tusk has said that the 27 countries that will remain in the European Union after Britain leaves have agreed to accept London’s request for a Brexit extension until 31 January 2020.

“The EU27 has agreed that it will accept the UK’s request for a Brexit flextension until 31 January 2020,” Tusk said in a tweet.

Tusk also said the decision is expected to be formalised through a written procedure, which means EU leaders will not have to meet in person to formalise it.

With 10.5 million Brits claiming that they are in the worst financial position of their life during the three years since the initial referendum result, the state of personal finance in the UK has been seriously neglected amidst the Brexit negotiations within the House of Commons and with the EU

The British economy has continued to flat-line, with confidence worsening, as investors and businesses alike were left in limbo during the war-like infighting pursued by the rival factions in Westminster. Last quarter, the British economy witnessed negative growth for the first time since 2012, with many commentators believing political uncertainty as the key reason for this decline. This three month extension to the uncertainty seen so far could exacerbate the issue.

In addition to this, FairMoney.com can unveil nationally representative research looking into people’s personal finances and how they have been affected by Brexit.

Key stats

  • A fifth of Brits – 10.5 million – believe that they are in the worst financial position that they have ever been in
  • Over half of Brits – 53% – said that their average disposable income per week is less than £0
  • One in five women in Britain feel that their mental or physical health has suffered as a result of financial stress
  • Over an eighth of Brits -15%- believe that financial issues have caused strain in their marriages or relationships

Now, Dr Roger Gewolb, Founder and Executive Chairman of FairMoney.com – Britain’s leading fair loan price comparison site – is imploring politicians in Westminster to deliver the referendum result over three years on:

“The will of our people, the vote of our democracy, was made clear three years ago, albeit by a thin majority. Since then, our predominantly ‘Remainer’ politicians have to varying degrees not carried this requirement of the people forward effectively. Now, with a further extension agreed, the political limbo looks set to continue. Politicians in Westminster must reach across the aisle, find a way to make this work and do what’s best for the national interest.

Now that there has been another delay, I ask this: What is your plan? Have we seen the slightest mention of anything that will happen after 1st November now that extension is agreed? People have criticised Boris for being more trouble than strategy, but what is the strategy of this incredibly diverse group of people, filled with personal agendas and self-interest, and how and if ever when will they agree on one? And, how will that be any different than the insipid agenda that Theresa May tried to put forward three times?

We will be stuck in an even worse and more risible position than we were with Mrs May; British public and especially the financially challenged British public, and especially those 14 million in poverty, will see their lives and their well-being eroded further, and probably exponentially.”