February 2, 2023

Brexit – what next?

The British economy goes from strength to strength with record levels of employment. The employment rate hit 74.8% as the Office for National Statistics reports. The unemployment rate has fallen to 4.6%, the lowest it has been for 42 years.

Surprisingly, even such a situation does not shift the bargaining power from bosses to workers. Real wages continue to fall. Equally, tax revenue does not keep pace with the economic growth.

The big question is: Where does the economy go from here? Brexit means for the government not only leaving the European Union but also the single market, the customs union and other major EU foundations that have a tremendous impact on trade and wealth creation in Britain.

Leaving the European framework for open business creates uncertainty that could slow down wealth creation and accelerate the unequal wealth distribution in the UK.