Political & Economic Waymark

 

 

We’ve waited long enough for it but finally we have a waymark on the Government’s thoughts on the exiting of the EU and the UK economy in general. Monday was a big day politically and economically……not only did Theresa May show her EU hand but the Forgotten Man (Chancellor Philip Hammond) actually spoke in public and gave an actual opinion. Ground breaking stuff for this Government.

 

Theresa May……

The big news from the Prime Minister was that the UK will begin the formal Brexit negotiation process by the end of March 2017. The timing on triggering Article 50 of the Lisbon Treaty (and giving 2 years notice to leave as a consequence) means the UK looks set to leave the EU by summer 2019.

 

Theresa May said that “voters had given their verdict with emphatic clarity and ministers had to get on with the job.” I’m never one to split hairs (actually, on second thoughts), but the EU Referendum results were 51.9% ‘leave’ and 48.1% ‘remain’……I’m not really too sure that such a narrow win / decision can be classed as “emphatic clarity”. In fact, it couldn’t be further away from “emphatic clarity” and  was closer to a vote recount!  

 

What was emphatically clear was her chest thumping statement that “we are going to be a fully independent, sovereign country - a country that is no longer part of a political union with supranational institutions that can override national parliaments and courts.” I have no doubts that she will deliver Brexit……her legacy will be written for her based on how orderly we leave.

 

Forgotten Man……

Chancellor Philip Hammond said he will prioritise spending on new homes and transport rather than following his predecessor George Osborne's aim to balance the books by 2020. He said his predecessor's deficit reduction policies "were the right ones for that time but that times had changed since the vote to leave the EU”.

 

Which all begs the question……what was the point of years of austerity, job cuts, cuts in public spending, etc. if a change in cabinet (not change in political party) rips up all that has gone before? Regardless, the Forgotten Man will spend more and cut less as he is concerned that Brexit “may cause turbulence and business confidence would be on a bit of a rollercoaster".

 

Rightly or wrongly, agree or disagree, the direction of travel seems far clearer now.

 

For me, the Prime Minister and Chancellor spilling the political beans on Monday was a Ferrero Rocher moment…… ambassador you are spoiling us.