Brexit Britain: Three lost years and counting…
As it stands, three years have already been lost in Brexit Britain, which could continue well past the October 31 deadline.
Three years of lost time, opportunity and money that the UK cannot get back.
This week alone it was announced that factory closures designed to deal with the original March 29 departure deadline led to a reduction in car production in Britain last month by close to 45 per cent.
Brexit has thrown the UK into a fundamental crisis. It has cost the country three lost years that could have been filled with opportunity. Brexit has truly taken over. Everything parliament says and does, or rather doesn’t do, involves Brexit.
Imagine what could have been achieved over the past three years, socially and economically, if individuals and organisations had been building a long-term, sustainable economic growth strategy?
Three years that could have been spent looking into ways to maintain existing and welcome new investment into Britain.
Growing industries such as fintech, blockchain and cleaner energy could have been developed over the past 36 months to safeguard jobs and wealth creators for future generations.
Instead, Britain has inflicted immense damage to its reputation on the world stage, going around and around in circles trying to reach a deal.
Brexit Britain has cost billions and billons of pounds. And it’s far from over.
In little under three years, Brexit has cost Britain’s economy £66bn, according to S&P Global Ratings.
Moreover, as a result of Brexit, confidence in the UK’s financial services sector is at a record low.
Due to the ongoing uncertainty and a staggering lack of leadership from all parties, a large number of firms have relocated segments of their business or key members of staff to locations such as Paris, Luxembourg, Dublin, Frankfurt and Amsterdam, or setting up legal entities in the EU. It’s highly unlikely they will return once they’ve left.
In addition, the value of the pound has also fallen significantly due to Brexit. This has reduced people’s purchasing power. Of course, a weaker pound means costlier imports, with rising prices typically passed down to consumers.
Furthermore, in regard to the government, the Treasury has set aside £4.2bn towards department designed to Brexit preparations since 2016; the 2017 general election which took place because of Brexit consequences cost £269m; and, of course, the £39bn so-called “divorce bill” agreed with the EU.
Indeed, the ongoing Brexit chaos is unlikely to stop at the end of October.
Following three years, the uncertainty grows, rather than diminishes. Unanswered questions such as who will be the next Prime Minister? Will a second referendum take place? How will politics be divided further with the rise of the Brexit Party? What will the impact be for the UK and its trading partners operating under WTO rules?
With so many questions nowhere near an answer, Brexit Britain’s lost years will only accumulate, and are far from over.
As such, it is most unsurprising that UK and international investors in UK assets are reacting to the Brexit-related uncertainty by taking their wealth out of the country.