‘What’s not to like?’ Brexiteer’s Bullish Verdict After Inquiry Shatters Project Fear Myths | Politics

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‘What’s not to like?’ Brexiteer’s Bullish Verdict After Inquiry Shatters Project Fear Myths | Politics


Brexit: the Remain campaign “was the fear of the project”, according to Liz Truss

And Professor David Blake said with the uncertainty now behind it, the nation is in a fantastic place to capitalize on all the benefits of standing outside the bloc. City economics professor, University of London, was speaking after the publication of the new Deloitte Chief Financial Officer (CFO) survey, which found that more than half of UK CFOs said they had also seen a full recovery of demand for their businesses, or hope by the end of the year. It comes as Prime Minister Boris Johnson prepares to announce the easing of all remaining Covid restrictions will continue on July 19, with the aim of stimulating the economy.

Meanwhile, around 76% also said they expected hiring to increase in the coming year – with hiring and spending expectations at their highest level in nearly seven years.
Professor Blake told Express.co.uk: “Certainly companies do not like to invest when there is uncertainty.

“The two main sources of uncertainty in recent years have been Brexit and the coronavirus pandemic. “

Since the start of the year, the UK has left both the EU and the single market, so one source of uncertainty has been resolved, he explained.

Boris Johnson’s UK set to thrive – baffling Brexit heralds, Professor David Blake said (Image : GETTY)

Ursula von der Leyen, President of the European Commission (Image : GETTY)

Professor Blake said: “The rest predicted that the economy would collapse, as would our international trade. But neither has happened.
“In addition, the brilliant success of our vaccine development and deployment has eliminated the second source of uncertainty.

“Freedom Day is July 19 and from then on we will have to live with the virus.

“This means that much of the rest of the economy, such as hotels, theaters and cinemas, will now be able to open its doors.

“This explains why business investment is expected to increase in the coming months. “

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Lord Andrew Adonis, a prominent Remainer, is closely associated with the concept of Project Fear (Image : GETTY)

Professor Blake said: “Business investment is essential to improve worker productivity, that is, output per worker.
“The low productivity of workers is one of the great weaknesses of the UK economy.

“Labor productivity is directly related to capital per worker and this in turn depends on capital investment.

“An increase in business investment is therefore to be warmly welcomed. “

The welcome recovery in the economy would also trigger an increase in demand for workers, Professor Blake said.

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Boris Johnson

Boris Johnson announces plans to lift COVID restrictions in Downing Street (Image : GETTY)

Comparison of vaccinations against Covid

Comparison of vaccination rates against Covid (Image : Express)

He said: “Companies claim that there are shortages of skilled workers and they are having difficulty recruiting.

“Before, they depended on cheap labor from the European Union to fill vacancies. But now that we have left the EU, that source of labor is no longer so readily available. “

It was precisely because of the immediate availability of EU workers that companies did not need to train young British workers through apprenticeships, Professor Blake stressed.

As a result, many school leavers found themselves unemployed, with EU citizens doing the job they could as well do.

He added: “After leaving the EU, companies will have to do what they did before – that is, to provide training and apprenticeships to young people leaving British schools. “Therefore, we could end up with a virtuous circle of new workers trained in the use of new productivity-enhancing capital goods that will increase productivity and wages and reduce unemployment.

Rule changes July 19

Rule changes scheduled for July 19 (Image : Express)

What not to like?

Professor David Blake

“In the longer term, too, robots can and will do a lot of jobs that British workers don’t like to do.

“It happened in Japan – a country that has never used immigration to deal with labor shortages. “

Professor Blake acknowledged: “There are short-term issues to overcome, such as the shortage of truck drivers.

“This could be solved by offering short-term work permits to experienced foreign workers. “But overall things are looking up – the economy will fully recover from the pandemic later this year, business investment is booming, job vacancies are at their highest for years and wages are high. real values ​​are also increasing to their highest level in years. What’s not to like?

On the expense side, the survey found that CFOs put more emphasis on expansion plans, with 41% introducing new products and services, or expanding into new markets as a top priority.

Five key Brexit moments

Five key moments that led to Brexit (Image : Express)

Meanwhile, a takeover is a top priority for nearly one in three people – the highest level in 11 years – and 22% said planned increases in capital spending over the next 12 months will prevail. .

Ian Stewart, Chief Economist at Deloitte, said: “As the economy reopens, CFOs’ perceptions of external uncertainty have fallen below the past five year average and companies have moved away from defensive strategies. that got them through the downturn.

“The pandemic, like all major shocks, will reshape the economy and we will likely see years of normal growth compressed into just a few months.

“In fact, eight in ten CFOs believe that productivity will increase as a result of the pandemic.

“This offers hope for a more comprehensive recovery than after the global financial crisis. “

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