Prime Minister Theresa May will formally invoke Article 50 of the treaty of the European Union today, which will officially kick off Brexit.
Leaving the EU brings about much uncertainty and May and her government have a long and tedius task as Britain has been part of the bloc since 1973. While little is known about what the new relationship with the EU will bring, here's what we know so far:
What is Article 50?...
Article 50 is a clause in the Lisbon Treaty, an international agreement signed by all EU member states, allowing countries the option to leave the bloc. Invoking Article 50 will begin the formal process for the UK’s withdrawal from the EU.
What happens today?...
The Prime Minister will state the Britain’s intention to leave the EU in a letter, which will be hand-delivered to European Council president, Donald Tusk, by the UK ambassador to the EU, Sir Tim Barrow. The letter will begin the process of the UK's separation from the EU.
May is expected to make a statement following the Prime Minister’s Questions around midday.
How long will it take?...
The UK has two years to negotiate the terms of its exit from the EU after Article 50 is triggered.
Some EU leaders and economists expect it could much take longer to come to an agreement as the UK and the 27 other EU members thrash out the details of new trade and immigration policies.
Regardless, Britain must leave the EU by 29 March 2019 and May has said “no deal is better than a bad deal”.
Kallum Pickering, senior UK economist at Berenberg, said: "We still believe there is a good chance that the UK and EU27 will agree a post-Brexit trade deal in the end. However, the issues that led to Brexit in the first place could again turn into points of contention. Migration remains the key concern."
What are the implications for the economy?...
The pound has already plunged on the back of last June’s vote to leave the EU. Many economists believe sterling may have further to fall, which would push inflation higher and squeeze household incomes.
Bank of England Governor Mark Carney has warned there are limits to how far inflation can overshoot the central bank's 2% target and would take policy action if needed. Consumer prices rose 2.3% in February, the latest official data showed.
The full impact on the economy, however, remains uncertain and economists and politicians have varied views on what's to come.
A number of banks have stated their intention move their headquarters from London, including HSBC Holdings plc (LON:HSBA), UBS Group (NYSE:UBS) and JP Morgan. This could have ramifications for the UK’s financial sector and economy.
Meanwhile, access to the single market will be lost after Brexit and unless the UK can negotiate a new trade deal with the EU this will serve a massive blow to British-based companies.
However, pro-Brexit politicians have argued leaving the EU would allow the UK freedom to negotiate trade deals with other countries. Australia, New Zealand and the US have already raised their hands at the prospect of a trade deal with the UK.
Will there be a Scottish referendum?...
Scotland’s First Minister Nicola Sturgeon has called for a second referendum for independence after a majority of the nation’s residents voted in favour to remain in the EU.
Members of Scottish Parliament will vote later today on the motion are expected to back the referendum.
However, May has said “now is not the time" to discuss a referendum, suggesting the UK government will reject calls for a new vote.