It has been rather quiet on the blogging front these past few months as other projects impinge on my time, but every year around this point I take a look at where we stand on the Brexit issue, and given what has happened in recent weeks it would be a shame to break with tradition.
Johnson disappears and so does a lot of support for Brexit
The most noteworthy event was Boris Johnson’s resignation as an MP – an action precipitated by a report from the Parliamentary Committee of Privileges which would otherwise have recommended a suspension from the House of Commons. Never one to accept personal responsibility, Johnson flounced out of parliament, blaming everyone but himself for the circumstances of his departure. His exit nonetheless raised a whole raft of questions surrounding his toxic legacy and the circumstances that allowed him to thrive.
Both of these issues have been well documented on this blog over the past seven years and have their roots in the poisoned well of public debate triggered by Brexit. Quite simply, Brexit was a strategy designed to further the ends of those populist nationalists who largely happened to be members of, or associated with, the Conservative Party. This is not to say that the parliamentary Tory party of 2016 was rabidly pro-Brexit but it became so when the tone of public debate shifted in the wake of the referendum such that those who questioned the wisdom of the strategy were denounced as enemies of the people. It was in this environment that Johnson was enabled to rise to the top, promising his oven-ready Brexit deal despite the fact it was known in 2019 to be a far less economically attractive proposition than that negotiated by his predecessor, Theresa May. The same supporters egged him on to prorogue parliament in 2019, as he sought to subvert due parliamentary process. In so doing, Johnson kicked 21 Tory MPs out of the party who had the temerity to oppose his strategy. Perhaps it was that point that the Conservative Party became spectacularly unmoored.
Admittedly Johnson did win a handsome electoral majority in December 2019, although this was due in large part to the quality of an opposition led by Jeremy Corbyn. Not long afterwards, a combination of the Covid pandemic and apparent lack of interest in the business of governing caused the government to rapidly lose its way. Indeed one of my biggest concerns in recent years has been the lack of effective governance.
As many of those who agitated in favour of Brexit gradually leave the stage, they leave behind a toxic legacy. Following Johnson’s ousting from Downing Street last year and the implosion of the Truss premiership, the gilt has been slowly peeling from the Brexit crown. Since autumn 2022 the survey evidence points to a lead of 20 points for those who believe that voting to leave the EU in 2016 was a mistake. That does not exactly scream “will of the people.”
Many of the fears of those who pointed out the economic consequences of Brexit are now being realised (I include myself in that camp). It is simply more difficult to conduct cross-border trade in a world where barriers have been erected where once there were none. As of Q123 the volume of UK goods exports was 9.1% below the average levels in 2019 whilst import volumes were down 8.1% (admittedly the figures are volatile on a quarterly basis so we should not over-interpret them). But the OBR has pointed out that the UK’s trade intensity (trade as a share of GDP) has fallen below that in other G7 economies.
The fall in immigration from the EU has also contributed to the UK’s economic difficulties in a material way. Since 2020, there has been net outward migration of EU nationals: no longer can the UK rely on skilled labour from continental Europe to fill gaps in the domestic labour market. Although this has been more than offset by a net inflow of non-EU nationals (+606k in the year-ending December 2022), only 30% of them came to work, with almost as many being granted leave to remain on humanitarian grounds and therefore not immediately eligible to work (most of the remainder came to study - chart above). Labour shortages have contributed to second round inflation effects, following Covid-related supply bottlenecks and an energy price spike, which are making life harder for many. This is not to say that Brexit is wholly responsible for the cost of living crisis but its role cannot be denied.
These figures have to be treated with caution. Nonetheless they do suggest that Brexit has imposed a sizeable hit to the UK economy. This should come as no surprise: The way that the UK trades with Europe has changed and it is no longer as easy to cross borders as it was prior to 2021. Eurostar services between London and Amsterdam, for example, have been suspended for a time as construction work means there is no space to perform passport and baggage checks in Amsterdam (ironically well reported in the Brexit-supporting Daily Telegraph).
What happens now?
Nobody really knows. Labour has ruled out returning to the European single market and the customs union, promising instead a “pragmatic” relationship with the EU. Obviously it is trying to win back voters in its core seats where it lost out to Boris Johnson’s promise of an oven-ready deal. But the polling evidence suggests that closer relationships with the EU would not be a vote loser.
Brexit remains an emotive subject. Economically, it poses additional costs at a time when global inflationary pressures are rising, along with interest rates; productivity growth remains sluggish; the fiscal position is less than ideal and the demographic profile is not supportive of a decent medium-term economic rebound. Some of its strongest proponents continue to claim that a “true” Brexit has not yet been tried so it is no surprise that it has failed to yield any benefits yet. Such people are the equivalent of flat-earthers who would not recognise facts if they were presented in a gift-wrapped box. They are, however, increasingly a minority who will probably be left howling at the moon as the political pendulum swings back towards the centre while the likes of Nigel Farage represent a no-trick pony.
However, nobody has the stomach to overturn the events of 2016 for fear of the bitterness it would unleash. It will take a new generation of politicians, untainted by events of the past decade, to find a rapprochement with the EU. By the time that happens, a future generation of historians will likely judge Johnson and his ilk as harshly as those of us who predicted much of the disaster he unleashed.
