International law firms warn clients to accelerate no-deal Brexit planning after MPs reject May’s deal

Leading experts from several international law firms have given their verdict on MPs’ rejection of Prime Minister Theresa May’s deal to exit the European Union (EU), which leaves the UK on a default course to exit the EU without an agreement on 29 March.

Hogan Lovells partner Charles Brasted, who heads the firm’s Brexit team, told the Law Gazette that “unless and until a majority [of MPs] coalesces around a deal that the EU will accept, a no-deal exit on 29 March is the default outcome. The majority in the house who seek to avoid that outcome must be under no illusions as to what it will take. In the meantime, the clock keeps ticking to 29 March. Like businesses and citizens in the UK and across Europe, preparations for no deal will have to continue apace, on the part of the UK, the EU and all of the EU27 member states.”

Meanwhile, Clyde & Co partner David Hansom suggested delaying the Brexit date with the consent of the EU27, which could give the government, Parliament and the EU time to agree a deal. “Practically, all options are still on the table,” he said. “Businesses should continue to plan for a no-deal but it would appear that a softer Brexit, or no Brexit at all might be on the horizon.”

With the country’s elected representatives unable to agree an exit plan and the majority of MPs at odds with the result of the 2016 EU membership referendum, the only guarantee is more uncertainty for law firms’ clients. Allen & Overy partner Daniel Shurman summed up the commercial perspective on the situation: “All businesses can do is continue to implement their hard Brexit contingency plans to ensure they are prepared for any outcome on 29 March. Uncertainty remains, which means risk for business.”