By Guy Corbet, Fourteen Forty
Too much has been written about what Brexit might or might not mean.
What it does mean is that business, ordinary people and politicians will all soon have a much bigger role in the decisions that shape our everyday lives.
The Chancellor, Rishi Sunak, delivered what must have been the most important speech of his life today with the nation, and much of Europe, now reaching crisis point.
Having unexpectedly stumbled into the job less than a month ago, he was always going to have his work cut out to deliver this. And that was before the Covid-19 spectre reared up.
Prime Minister Boris Johnson’s much talked about Cabinet reshuffle has arrived.
Today is one of the most important days for a prime minister. The power to appoint ministers, rewarding loyal or effective MPs and punishing disloyal or ineffective MPs, is a privilege exclusive to the PM. Reshuffles allow PMs to exercise their patronage.
With a significant Conservative majority, free marketeers can breathe a collective sigh of relief. But, far from taking a step back, business must become more engaged with government and much better at making the case for the contribution that business can make to society and the economy.
A clear majority
Boris Johnson has won one of the most decisive election victories in recent political history. By giving the Conservatives a majority of 78, the largest since 1987, the Conservatives have broken the deadlock that had taken over British politics since the 2017 election.
The pound has reacted strongly to the new-found certainty that business and the economy have not had for years. Pundits are focusing on the certainty this result will mean for Brexit. The result also gives business a new certainty. It will not need to adapt to the whims of a Marxist government with little regard for private property and which might bankrupt the country.
What next for the Conservatives in Government? Now the real contest for power and influence.
The Conservatives have a clear majority. But the struggle for power is not over. Factions within the party will now vie for control, to implement their version of conservatism.
What’s the likely impact on business and economy? Here we look at the two likely factions and what to look out for over the next few days.
At the end of January, the United Kingdom will leave the European Union. When she does so, Dominic Cummings – the most powerful political advisor in a generation – will achieve his life’s purpose and political ambition. According to insiders, his departure from politics will shortly follow.
Two powerful factions are in fierce competition to become the dominant political force upon his departure. The result of this internal power struggle will have a far greater impact on business and the economy than the pantomime of the General Election.
Read More “When two tribes go to war. Now the contest for power begins.”
British politics moves at remarkable speed. With the results of the election hot off the press, Boris will be expected to fully constitute his Government in the coming days.
The Conservatives pledge to ‘get Brexit done’ (you may have heard about this) and the imminent return of MPs to Parliament, further heightens the urgency.
Read More “The early indicators: five things to look out for as the new Government beds in”
“Weak Links?”
In 1973 Stanford Professor Mark Granovetter’s “the strength of weak ties” argued that weak links, between people with different opinions, help new and unfamiliar ideas spread.
Read More “Weak Links #5: digital campaigning, immigration, neoliberalism, business indices”
Sam Dumitriu, research director, The Entrepreneurs Network
One silver lining to Brexit for sceptical liberals like myself is that it’s an opportunity to have a more nuanced and intelligent debate on immigration. Wishful thinking? Perhaps, but since the referendum attitudes have shifted. Both Remainers and Leavers are more positive about the effect of migration on the UK.
Progress in the immigration debate depends on the public having access to all of the facts. But we at The Entrepreneurs Network noticed there was a gap in the debate. Too often the media focused on whether or not migrant workers took jobs or drove down wages. They neglected the job-creating impact of immigrant entrepreneurs entirely.
Read More “Job creators: the immigrant founders of Britain’s fastest growing businesses”
