As one Brexit hurdle is cleared, the doom-mongers erect another. Ahead of last June’s referendum, the Treasury warned ad nauseam that voting to leave the European Union would spark “an immediate and profound economic shock”.
Since that vote, with the economy holding up regardless, we’ve seen endless legal battles and Parliamentary shenanigans stopping the Prime Minister from even getting the Brexit ball rolling.
Theresa May has long refused to give a running commentary on her negotiations with the European Union. Last week, in a moment of high Parliamentary drama, the Prime Minister conceded her government will now publish a “Brexit plan” before triggering Article 50 by March next year.
Having backed Brexit, I’ve always recognized it may be unwise for the government to disclose its desired negotiating outcome. These two statements aren’t linked. However you voted in June, everyone should acknowledge the potential downsides of the UK showing its hand ahead of what could be some extremely hard bargaining.
Last week’s Autumn Statement has provoked an extended gloom-a-thon. Those hoping to reverse the UK’s Brexit referendum, inevitably, were out in force. Scandalized at not getting their own way, countless political and media bien pensants have been doing their utmost to talk down the British economy ever since the vote went against them five months ago.
The negativity that’s followed Chancellor Phillip Hammond’s first Commons set-piece is just their latest attempt to spread panic and cower the government ahead of crucial negotiations on our European Union exit.
A tumultuous week for the pound. And there could be more to come. Sterling, at the time of writing, is below $1.24 – down from $1.29 last weekend. The markets are properly spooked.
This latest currency fall was sparked early last week, when Prime Minister Theresa May signaled her preference for “hard Brexit”. But then the pound plunged more. Friday’s “flash crash” – which saw sterling touch $1.18, before recovering – followed warnings from French President Hollande that Britain would “pay” for leaving the European Union. That apparently triggered a wave of automatic, computerized sell-offs.