On June 23, 2016, the United Kingdom held a referendum vote that decided whether or not the UK was to remain in the European Union. The results are 100 percent in and have been met with mixed feelings – the leave vote won by 52 percent to 48 percent, with a voter turnout of over 70 percent. Here are six ways that the referendum vote has impacted the United Kingdom.
1. The UK could face a breakup.
There are four countries that make up the UK – England, Scotland, Wales and Northern Ireland. By nation, both Scotland and Northern Ireland both indicated they wished to remain in the EU, while in both Wales and England, a slim majority wished to leave the EU. Since the referendum vote, talks of Scotland’s independence from the UK have been revived, as well as the possibility of Northern Ireland’s leaving to merge with the Republic of Ireland, an independent member of the EU.
2. The British Pound drops in value.
The GBP dropped in relative value from $1.50 to $1.37 since the vote on June 23. This means that various prices for goods and services in the UK are expected to go up to accommodate the decline in the GBP’s value.
3. The economy faces a slowdown.
After the vote, many businesses and individuals halted purchases in the uncertainty they faced. Because the transfer of money slowed, the economy also slowed down. If the economy suffers too much from the uncertainty, this could cause a recession, which would have an effect on the rest of the world.
4. Prime Minister David Cameron to resign.
In 2014, Prime Minister David Cameron agreed to hold a referendum on the decision to stay or leave the EU if his party won the 2015 election. He kept his promise begrudgingly – he was in favor of staying in the EU. Cameron has decided to resign come October while a new leader is picked in the Conservative Party.
5. Scientific research in the UK could take a hit.
Scientists in the UK produce 16 percent of research papers that are the most highly cited in the world. UK scientists depend on funding to do their research, and a lot of that funding comes to them from the EU. Without that funding, scientific research from the UK could dwindle. Many scientific advances in Europe depend on international collaboration. Having EU membership is heavily depended on by UK scientists. Without the EU, scientists in the UK would have a very hard time getting funding and would struggle recruiting talent to assist in research.
6. Leaving the EU isn’t an overnight process.
Leaving the EU isn’t as simple as a vote. There is a whole exit process that the EU has. The minimum amount of time it would take to leave the EU would be two years. During the two-year minimum, the UK would have to come up with its departure terms. For the agreement to be met, it would have to be ratified by both the European council and parliament in Strasbourg.
Some short term effects of the vote have already been seen in the days since the referendum passed. It is hard to tell what the long term effects are going to be, especially since there is still a lot of wait time before the UK can officially separate from the EU. Only time can tell what those long term effects will really be.
