Will Brexit deliver the next Big Bang?
Rory Broomfield believes the Brexit vote may prove to be the catalyst the country needs to deliver the next Big Bang. But for it to be a success we must maintain momentum, he says.
30 years ago "the Big Bang" happened in the City of London and trading was revolutionised overnight. Just over four months on from the June 23rd vote to leaving the EU, the UK is experiencing growth, investment and jobs – and has fantastic potential, if only we can embrace it.
Growth, investment, jobs and opportunities – that have been the result of the previous four months since the Brexit vote. Discredited are those who've been acting like cockroaches whilst trying to do the prospects of Britain's bright future outside the EU down. The UK post vote has seen some fantastic economic news.
This has been illustrated by today's announcement that the UK economy has grown 0.5 per cent post Brexit vote. Of course, this is only an early estimate to something that might be revised, however, it sums up the good news that our economy has been seeing.
There has been, even within the past month, new jobs and investments as McAvoy Group announce £10 million investment in modular construction and 38 new jobs, Tyrrells crisps takeover creates 'hundreds of new jobs' and Dutch bank ING to move dozens of trading jobs to London. There has been increased income and profits for companies with Visa's profits jumping 28 per cent on consumer spending spree, Ted Baker bucking retail woes with higher profits and sales jumping as Tesco's crisis is proclaimed 'over' with new profits. There also been a general sense of confidence in the economy as fewer UK firms are struggling, Buy-to-let continues to boom and consumers feeling cheery ahead of the Christmas shopping season.
No wonder confidence in Britain is at a five year high.
Indeed, the above news is just a small snapshot of a wider picture – a picture that is proving to be rosier and more filled with opportunity than any "remoaner" or "bremainer" predicted (or still predicts).
This was even confirmed by another so-called "expert" the other day when the World Bank was forced to admit that the UK is the most business friendly major economy, casting fresh doubt on the doom-laden Brexit warnings given by George Osborne, David Cameron and others.
As such, I believe that the Brexit vote could be the start of a new Big Bang – or economic revolution – for the UK. But this time, it can go beyond the City of London.
It all depends on whether we can stop the likes of Philip Hammond, Nick Clegg and Anna Soubry getting their way and forcing the UK to remain in the EU Single Market.
According to analysis by Professor Patrick Minford CBE, the Single Market doesn't just put costs onto the UK economy that are estimated to be in excess of six per cent, but it also restricts our ability to adopt legislation that makes us more competitive on a global scale (an opportunity cost, so to speak). As such, remaining in the EU's single market would restrict our ability to reform, reframe and improve the UK economy; it would restrain us from adopting new innovative techniques that embrace global trade and the golden opportunity that is here for the taking.
In order to ensure that the Brexit vote does prove to be a new Big Bang for the wider economy, with growth in tourism, manufacturing and trade (besides other sectors), we need to cut the Gordian knot and follow a roadmap that sets out a way for British exit from the European Union.
As luck would have it, there is such a plan, first published in 2014 by the Institute of Economic Affairs and revised, updated and republished in its second edition form by the Competitive Enterprise Institute this year. The plan is titled: 'Cutting the Gordian Knot: A roadmap for British Exit from the European Union'; it offers a blueprint for how the UK can begin to benefit from its decision to leave the EU's Single Market. I hope the powers-that-be take stock of it.
