Two days ago I would have blogged that UK PLC was sailing into the wind, and was at that critical point where you use the sail to try to come about. It then flaps wildly and you lose any advantage. You have lost the wind and in our case, we lost the plot as causes were thrown up in the air and fell into the laps of not one, but two Cabinet Ministers with opposing views. They ended up spitting in the wind as the rest of UK PLC ripped their policies to shreds.
Today, we have reached the last crisis, not the latest, but the last. We have to step up, not to accept, but to reverse it. Neither one, nor two, but three Japanese banks are relocating their financial and investment hubs to Germany. Frankfurt has been waiting in the wings for a decade or more to become premier financial hub for the EU and we have thrown it at them. For some reason that I don’t understand, we and the rest of the world should watch what is happening to the Japanese economy. They have slowing growth and an ageing population. In order to grow, their government wants to raise sales tax from 8% to 15% to help its economy. As you can imagine, this is as popular with the public as a ton of bricks. There is talk of economic failure otherwise between 2021 and 2023. But there has been some muttering here about raising taxes to pay for the latest wheeze.
Does it occur to nobody that the rest of the world is looking at our government? The £1 billion, set to become £1.5 billion given to the DUP, ensures votes with the government on certain votes, but not all of them. It is the worst agreement that I remember and has caused the start of banks moving to Europe. This is not a knee-jerk reaction, but one that is in response to our failing government. Unfortunately Theresa May’s agreement sent a signal to global partners that the UK is a walkover. She must resign immediately and long-term MP’s and MEP’s should guide us towards Brexit. Find a new Conservative leader quickly.
We are failing Europe. Whatever has happened fiscally up to now, should be discounted. It is only important what we do from this moment. Raising taxes is far too easy and unpopular with hard workers. If they are penalised, they may well relocate. We have long had the best talent and we need to keep it.
If you are reading, you may know someone who can fix it.
Wish us luck.