Brexit News for Monday 6 November

Brexit News for Monday 6 November
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Theresa May to urge business chiefs to look forward with ‘optimism’ to life after Brexit…

Theresa May will tell business leaders today to cheer up about Brexit and embrace the ‘huge opportunities’ ahead. The Prime Minister will use a speech to the Confederation of British Industry to urge firms to look forward with ‘rational optimism’ to life after the UK’s exit from the EU. She will insist that after a decade of recovering from the financial crash, the next ten years will be ‘a new chapter in the story of the British economy’. – Daily Mail

Theresa May will today urge businesses to look to the next decade with “rational optimism” as part of a new chapter for Britain’s economy. In the run-up to the publication of the industrial strategy white paper this month, the Prime Minister will pledge to create a “stronger, fairer, better balanced economy… which builds on its strengths and can compete in the world”. – Telegraph

  • We won’t shield UK economy from market forces – BBC News

…as she promises ‘strict time-limited Brexit implementation for future success’

In a speech at the Confederation of British Industry (CBI) later on today, the Prime Minister will calm business fears by assuring that an implementation period will avoid a “cliff-edge” Brexit. She will say: “I know how important it is for business and industry not to face a cliff-edge and to have the time it needs to plan and prepare for the new arrangements. “A strictly time-limited implementation period will be crucial to our future success.” Advanced extracts released from Mrs May’s office also state she will call for businesses halt their worries and insist that hard work is needed to ensure economic success in a UK free of the EU. – Express

Labour suggests ministers could be in contempt of Parliament over failure to hand over Brexit papers

Labour is to warn ministers on Monday that they risk being held in contempt of parliament if they do not immediately release dozens of papers outlining the economic impact of Brexit, ratcheting up the pressure to secure the documents. The government conceded last week that it has to publish the 58 studies covering various parts of the economy after a Labour opposition motion calling for this was passed unanimously on Wednesday. – Guardian

  • Plaid Cymru seeks publication of Brexit economic impact study – BBC News

MPs call for new committee to review transfer of EU law into UK

The British House of Commons’ procedure committee today called for a new committee to review EU legislation transferred into U.K. law, saying the current proposal for parliamentary scrutiny was “inadequate.” The procedure committee, which makes recommendations for how business should be conducted in the House of Commons, said there should be a new “sifting committee” to decide which legislation under the EU (Withdrawal) Bill needs further evaluation by MPs. – Politico

No Brexit apocalypse now worries British business

The false prophecies of an economic collapse, aired loudly before and in the days after last year’s referendum on EU membership, have boosted the confidence of hard Brexiteers. A group of them even says a “no deal” with the EU on future relations after the 2019 exit date isn’t a bad thing. Others, including many in British business, are quietly sorry the economy hasn’t taken a hit — if only because to them a hard shock seems the one thing that can sway the politics around Brexit and push the government to strike a favorable trade deal with Europe. – Politico

UK businesses are flourishing despite Brexit uncertainty

Britain’s businesses are prospering despite fears over the state of the economy, with profits rising and investment spending back on the agenda. Although companies remain cautious because of political uncertainty, their finances are in increasingly good shape, according to a survey from the Institute of Chartered Accountants in England and Wales (ICAEW). Profits and exports are both growing at the fastest pace since 2015 – well before the Brexit vote – and capital investment spending is also at a two-year high. Employment intentions are robust and research and development spending is also on the up. – Telegraph

Business as usual for dealmakers as Brexit fails to dent global appeal

British companies expect a surge in dealmaking this year as executives defy Brexit uncertainty and look to cut costs. The accountancy giant EY found that 60 per cent of businesses expected to pursue mergers and acquisitions in the next 12 months. This is the highest level since 2009, up nine percentage points from April and ahead of the global figure of 56 per cent. Britain has retained its place as the third most favourable destination for companies to invest, behind China and the United States. The UK fell out of the top five for the first time in the report’s seven-year history last October, but was back up to third place by April. – Times (£)

Britain ‘would be booming’ if it wasn’t for Brexit, says Mark Carney

Britain’s economy would be “booming” if not for Brexit, the Governor of the Bank of England has said. Mark Carney said businesses were waiting for the outcome of Theresa May’s negotiations with the EU before making investment decisions, which was slowing down economic growth. He said the bank’s predictions for foreign investment in Britain was now 20 per cent lower than they estimated in the month before the referendum. – Telegraph

> On BrexitCentral’s YouTube: Mark Carney on the opportunities of Brexit

Labour’s Frank Field wants to replace the Government’s “Brexit Bill” with a simple four-clause bill

Frank Field said his proposals would minimise the chances of the Bill, designed to smooth the UK’s exit from the European Union, from being derailed… Mr Field’s proposals would scrap the Government’s Brexit Bill and replace it with just four clauses – setting a date to leave the EU, replicating EU legislation and regulations on the UK statute book that day, allowing MPs to review these laws and regulations and the Prime Minister to negotiate a post-Brexit trade deal with the EU. The move would get rid of the Government’s controversial plans to use so-called “Henry VIII” powers to allow ministers, not MPs, to amend the Bill after it becomes law. – Express

Welcome for ‘Brexit war cabinet’ now dominated by Brexiteer MPs

A leading Brexit activist has lauded the Prime Minister for setting Britain “on the right track” after she expanded a Brexit war cabinet of MPs to finish off the talks. Jonathan Isaby, chief of BrexitCentral, said that Brexit may not be in the headlines lately, but the Government is working hard to get on with the job. Mr Isaby said that there was no better way to mark the 500 “glorious days” since the Brexit referendum than the strengthening of a ‘war cabinet’ tasked with tackling the negotiations. – Express

> On BrexitCentral’s YouTube channel: Jonathan Isaby welcomes Gove appointment during Sky News paper review

British tourists spend £33bn a year in Europe

A failure to reach a Brexit deal on free travel across Europe will jeopardise more than £33 billion spent by British tourists on the Continent, according to tourism chiefs. Research published today shows the extent to which many European countries are reliant on British holidaymakers. The study found that tourists from the UK are worth €37.4 billion a year to the 27 remaining EU member states. Britons were worth €13.1 billion to the Spanish economy and had the biggest impact in Malta, where 16 per cent of all businesses are connected to UK travel. About three quarters of all overseas trips made by Britons are to the EU. – Times (£)

Britain could remain in the single market if freedom of movement rules are modified, claims arch-Remainer academic

Britain could stay in the EU’s single market by offering to “modify” freedom of movement rules, a report suggests today. Leading economist Jonathan Portes said it was “practical and feasible” that EU migrants could continue entering the UK to look for work. Bu temporary and targeted controls could be introduced for separate regions and occupations in order to control immigration. The paper argues that the debate should not assume that the choice is simply between free movement exactly as now, and exclusion from the single market. – The Sun

Shanker Singham: Brexit can boost our trade and the rest of the world’s

If you had to invent a country to reverse the global trend of wealth destruction through trade barriers and regulatory protection, it would look exactly like Britain. It is a large economy, a massive services exporter (where these barriers are at their most pernicious), and has the requisite “soft power” to enable it to forge alliances to unblock stalled initiatives. To play the leadership role that the world expects it to play, Britain must have the autonomy to improve its own regulatory system, negotiate meaningful deals with other countries, galvanise the stalled WTO system and move global standards in pro-competitive directions. – Shanker Singham for The Times (£)

> Shanker Singham on BrexitCentral yesterday: The world needs Britain to have its own trade policy and not align too closely to the EU’s regulatory system

Christian May: The City’s response to Brexit is far from settled as the second stage of negotiations looms

Some of the City’s larger institutions have changed their tone as private conversations with officials begin to offer some clarity on the future of financial services. UBS, for example, was talking at the start of this year of moving 1,000 roles out of the UK, but the Swiss bank now plans to relocate only 250. This follows reassurances from policymakers on key elements of the bank’s trading operations. We should expect other banks to revisit their initial estimates on job moves. If these back-room conversations can be matched by formal progress on transitional arrangements (for which there is overwhelming demand in the City) then the Square Mile’s nightmare scenario may be downgraded to a bad dream. Not ideal, but certainly not the calamity some were predicting. – Christian May for City A.M.

Tim Worstall: Hard Brexit need not make us worse off

Why would we do something as blitheringly stupid as making ourselves poorer in this manner? The entire point of trade itself is to gain access to those imports of the things that foreigners make better or cheaper than we ourselves do. The only rational trade stance to have is thus unilateral free trade, which this country experimented with, most successfully, after the repeal of the Corn Laws. Brexit offers us the opportunity to do that again – to obey the WTO insistences on MFN status and charge ourselves nothing for our purchases of the goods and services of the world. As other research has shown, this will make us all richer, not poorer. – Tim Worstall for the Guardian

Jack Tagholm–Child: Juncker personifies everything that is wrong with EU

ast weekend, Jean-Claude Juncker’s European Commission signed off on an agenda for a more unified and stronger Europe. According to the plans set out in a paper entitled ‘The Future of Europe’, the EU will have its own Chancellor and be able to make structural reforms to individual EU nation’s budgets. The paper also calls for an EU army by 2025, an EU-wide work permit, a pan-EU cyber security agency, and EU expansion to include Serbia and Montenegro. Calls for an EU army by 2025 are particularly alarming. There are already measures underway to make this happen, such as The European Defence Fund (EDF), the European Defence Research Programme (EDRP), and the European Defence Industrial Development Programme (EDIDP). – Jack Tagholm–Child of Get Britain Out for The Commentator

William Wright: Unpicking 10 myths that refuse to die as the City grapples with the vote to leave

More than a year after the vote to leave the European Union, the debate is still raging over the potential impact of Brexit on the City of London – although it is often dominated more by heat than light. This is a short attempt to put some of the zombie myths from both sides of the argument out of their misery. – William Wright for City A.M.

Brexit in brief

  • Brexit is an important political event but not an important economic event – John Redwood MP for John Redwood’s Diary
  • Revoke the Brexit blueprint, not the decision to leave – Wolfgang Munchau for the FT (£)
  • The ghastly New York Times takes a snobby pot-shot at Brexit Britain – Iain Martin for Reaction
  • Let’s make science funding part of the aid budget – and help British tech save the world – George Freeman MP for the Telegraph (£)
  • It’s high time our manufacturing firms got smarter – Katherine Denham for City A.M.
  • Veterans for Britain propose new post-Brexit Commonwealth security and trade alliance – Express
  • Fishermen assured of more control after EU – Portsmouth News
  • Wizz Air on track for flying revenues as airline gets Brexit-ready – City A.M.
  • EU firms warn of deserting UK suppliers after Brexit – Guardian
  • Meet the EU’s protocol chief tasked with keeping Brexit running smoothly – Guardian
  • Invest so we can win the robot wars, Hammond told – Times (£)