From now on until Britain has left the EU, CPA are going to post regular blogs for the comments we have seen in the press and elsewhere about Brexit, which is perhaps the most momentous event that will happen to the UK for a very long time and will have long-term implications for every citizen living in this country for good or ill. We aim to be balanced in our reports which will be divided into three categories;
- Category 1 – Positive comments on Brexit
- Category 2 – Negative comments on Brexit
- Category 3 – Neutral comments on Brexit
We posted our first blog on 12th May 2017 (CPA Brexit blog on 12/5/2017)
We posted our second blog on 16th May 2017 (CPA Brexit blog on 16/5/2017)
We posted our third blog on 17th May 2017(CPA Brexit blog on 17/5/2017)
We posted our fourth blog on 22nd May 2017(CPA Brexit blog on 22/5/2017)
Please find below our fifth Brexit blog which has been compiled today on 26th May 2017:-
BREXIT; NEUTRAL COMMENT:
On 11th May in an article by Sam Coates in The Times he stated that the majority of voters are convinced Brexit will increase food prices. In an answer to questions, 65% said they think food prices will increase, 2% think food prices will fall and 22% think they will stay much the same and 11% do not know.
BREXIT; NEGATIVE COMMENT:
On 11th May in an article by Simon Nixon in The Times headed “Brussels is strengthened by Macron’s victory, which is bad news for Britain” he said that the real significance of Macron’s election for Britain is not his influence over Brexit but over the future of the EU itself (Macron being an ardent Euro file.)
BREXIT; NEGATIVE COMMENT:
On 11th May in an article by Sam Coates in The Times headed “Corbyn sows confusion on Brexit” he said that “half of Labour voters do not know the Labour Party stance on Brexit with less than a month to go before the general election”. The journalist also referred to a poll which showed that 44% of people believe that Britain was right to vote to leave the EU while 45% thought the decision was wrong. Apparently it is the third time that YouGov found that a majority of people thought that Britain made a mistake on last year’s vote.
BREXIT; POSITIVE COMMENT:
On 12th May in the Economist’s webpage ‘The Daily Chart’ it stated “Even Britain’s youngsters have a cynical view of the EU. Britain’s pro-Brussels brigade still looks Eurosceptic when compared with other Europeans of a similar age.”
BREXIT; NEGATIVE & POSITIVE COMMENT:
On 17th May Bloomberg says that the Conservative Party’s manifesto due to be released on Thursday (now released) will impose a triple-lock on the Prime Minister’s Brexit plan by recommitting to ending the membership of the single market, free movement of labour and the jurisdiction of the European Court of Justice. This implies a pretty hard Brexit.
The advantages to the Prime Minister laying out her strategy before the election will limit the chances of a cross-party, anti-Brexit coalition forming.
BREXIT; NEGATIVE COMMENT:
On 18th May in an article by Jennifer Rankin in The Guardian she said the newly elected French President wishes to bring about a “Buy European” act that would make it harder for non-European firms to bid for public contracts, as part of a more muscular response from Europe on foreign trade and investment.
BREXIT; POSITIVE COMMENT:
On 18th May in an article by Patrick Minford in The Telegraph he stated that he is certain of Brexit’s benefits. He says that being an economist he has come to realise that he has become a contrarian, which disagrees with his colleagues. He further states “With a small but distinguished band of my peers, we gathered under the banner Economists for Brexit to fight Project Fear, the massive campaign orchestrated by the Treasury under George Osbourne to brand Brexit as something no ‘expert’ could endorse. There are various technical reasons for my disagreements with the overwhelming majority of my colleagues on Brexit. The dominant opinion is essentially that the economy will suffer unless we protect our existing trade relationships with Europe. But as with 1981, I am convinced that we will look back incredulously on their views, as the economic benefits of embracing global free trade outside the European Union’s tariff walls become clear.”
BREXIT; NEGATIVE COMMENT:
On 18th May in an article under the headline “Living standards hit by rising inflation” by Phillip Inman in The Guardian it quoted “This squeeze on living standards is almost certainly caused by the falling pound since the Brexit vote. If Theresa May is allowed to pursue her extreme Brexit agenda, we can expect further weakening of the economy and erosion of people’s living standards.”
BREXIT; NEGATIVE & POSITIVE COMMENT:
On 18th May in an article by Justin Huggler in The Daily Telegraph headed “From cars to pets, Merkel tells UK it will pay” and a sub-heading “Germany’s leader in stern warning Britain that it can expect no favours if it curbs free movement.” Mrs Merkel conceded that Britain will be “free to make its own moves after Brexit”, but that “The EU would not stand by if its interests were threatened” and they would “have to think about what what restrictions we could create”.
In a footnote, reference was made that in an analysis by the Institute of Chartered Accountant in England and Wales, Britain could pay as little of £5 billion to leave the EU and rejects estimates of a “divorce bill” as high as £86 billion, taking into account rebates, EU spending commitments and other costs. It came up with three scenarios ranging from £5 billion to £30 billion.
BREXIT; NEUTRAL COMMENT:
On 18th May in an article by Allister Heath in The Telegraph headed “The Conservatives must not let Britain’s jobs miracle turn sour” he states “To make the most of Brexit, the UK needs to embrace free markets, not retreat to the quiet economic certainties of the sixties. The Tories will eventually come to realise this, of course, but not before they squander an immense opportunity to retool this country into a 21st-century trading superpower.”
BREXIT; NEGATIVE COMMENT:
On 19th May in The Daily Mirror it stated The PM has signalled she is ready to pay Britain’s Brexit divorce bill in a major climb-down ahead of looming talks with Brussels. Mrs May said she will pay a “fair settlement” to the EU amid fears negotiations could quickly breakdown. The EU has claimed Britain owes up to £50 billion in commitments towards its budget and various projects. But the Tory manifesto states “We will determine a fair settlement of the UK’s rights and obligations, in accordance with the law and in the spirit of the UK’s continuing partnership with the EU.” It makes clear that once the sum is agreed there will be no more annual budget payments for Britain.
BREXIT; NEGATIVE COMMENT:
On 19th May in The Financial Times in an article by Robert Wright it was stated “Tories pledge to double skilled migrant levy and triple NHS surcharge”. Apparently it was calculated that an annual fee on each non-EU worker if it comes into effect in April will rise to £2,000.
BREXIT; NEGATIVE COMMENT:
According to an article in The Daily Mail on 20th May, Brussels expects Britain to help fund its gold-plated £55 billion pension pot. This would give an average EU official £59,000 for decades to come. The Daily Mail article said that at £59,000, the average Brussels pension pay-out is more than twice the average UK salary.
Apparently, British Ministers insist there is no obligation to pay it, but people such as EU President Junker say that “the UK needs to meet it obligations”.
BREXIT; POSITIVE COMMENT:
In The Financial Times on 20th May in an article by Chris Giles, the Economics Editor, headed “Manufacturing order books improved further in April to reach a level last seen more than two years ago”, he quoted Samuel Tombs of Pantheon Macroeconomics who said “Manufacturers are benefiting from the revival in the world trade and sterling’s depreciation”
However; he added that the prospect of Brexit was also concerning companies. “The risk that the UK leaves the EU without a deep trade deal in place is casting a cloud over the outlook.”
BREXIT; NEUTRAL COMMENT:
On 21st May in an article in The Financial Times under Markets & Investing by Phillip Stafford, appeared a heading “Europe nears decision on base for euro clearing” it said that next month “The European Commission will advise whether or not a prized business in the City, the €850 billion-a-day clearing of euro-denominated derivatives, should be based in the Eurozone.”
BREXIT; NEGATIVE COMMENT:
On 23rd May, The Morning Account reported under the heading “INDUSTRY – EU accused of anti-City ‘protectionism’” that “Former Conservative party Treasurer, Michael Spencer, has denounced efforts by some EU countries to strip London of key financial services after Brexit. Speaking to BBC Radio 4’s Today programme, he said: “Damaging London, in my opinion, will also damage Europe and I think it is in the interests, certainly of the UK but certainly of the EU as well, to make sure that London’s capability as a global financial centre remains properly intact and undamaged”.
BREXIT; NEGATIVE COMMENT:
On 23rd May, The Morning Account reported under the heading “ECONOMY – Brexit fears could cost UK top FDI spot “ that “Concerns over Brexit could lead to Britain losing the top spot for FDI in Europe, according to EY. Its study found that 31% of investors expect the UK’s attractiveness for FDI to decline over the next three years, with 9% of respondents saying Britain’s withdrawal from the EU would cause them to shift their investment plans from Britain to Europe. Mark Gregory, the chief economist at EY, said: “The research suggests that the EU referendum vote and its aftermath may be having an influence on global perceptions of the UK’s medium to long-term attractiveness. Decisions on the majority of investments made in 2016 would have been made up to three years ago, which helps to explain the UK’s solid performance last year.” As reported in The Independent and The Daily Telegraph.
In these uncertain times, with currency fluctuations and trading difficulties, The Credit Protection Association continues to support British businesses and enable them to trade with confidence. We encourage our members to continue to credit check regularly and keep strict watch on their sales ledger, chasing payments once invoices become overdue.