Everything is moving very fast at the moment following the vote to leave the EU declared on Friday morning 24th June 2016. PM Cameron’s decision to resign has triggered moves to appoint a new PM, the shadow cabinet is falling apart at the seams, and the pound is falling further in trading in Asia, adding to Friday’s decline. The relatively calming words from George Osborne this morning were exactly what were needed.
Bev Budsworth, MD of The Debt Advisor and The Business Debt Advisor comments, “Over the 33 years I have worked in Insolvency we have seen more than a few ups and down and serious recessions. The long haul out of the last recession in 2008 is still very fresh in our minds and I am very determined to do my part to calm down individuals and businesses by assuring them that we can get through Brexit without another recession”.
According to top economist Professor Minford, the report issued by the Treasury in advance of the referendum was “flawed and treated us like fools.” He further commented that the Treasury report assumed Brexit would reverse and erode all the economic progress made since joining the European Union in the 1970’s.
I was fortunate enough to listen to an address by Professor Minford (The Professor of Economics at Cardiff University) on how Britain could survive Brexit and how our industries will become more successful, more productive and as our better industries gain traction they will gain foreign direct investments. Professor Minford feels the Treasury report was “backed by international bodies and UK economists who are part of an establishment who quite simply have their own interests for maintaining the status quo.”
Professor Minford had published a book prior to the referendum “Should Britain Leave the EU” which concluded that continued EU membership may cost us at least 13 per cent of GDP each year which equates to £9,625 per household. He argues that the ever continuing politicisation of the EU and the increasing influence of vested interests have led to a ratchet effect with Britain’s position ever deteriorating. He argues that with a surge in new controls proposed by Brussels, economic policy has moved further towards protectionism and intervention leading to taxpayers and businesses across the UK losing out. The book goes into some detail on why this cost of membership will be so high which includes:
- The introduction of extensive social regulation
- The integration of legal processes across borders in line with the “ever closer Union Principle
- The pursuance of aggressive policies on climate change without consideration of cost-effectiveness
Philip Booth, Academic and Research Director at the Institute of Economic Affairs has commented on Professor Minford’s report: “Currently the EU has poor and inflexible institutions for dealing with competing economic demands and the changing economic environment. It is a highly interventionist organisation, with a strong bias for top-down regulation and a socialist mind-set that is economically damaging”.
Bev Budsworth adds “We need to hear more from these experts who have spent years studying the EU and have so much more detailed knowledge that the average consumer could ever hope to know.”
Bev Budsworth is MD of The Debt Advisor Ltd based in Old Trafford, Manchester. She set up the business in 1999 having spent 17 years with Deloitte latterly as a Senior Corporate Recovery Manager. Bev has been a compassionate campaigner for rescue solutions to be “fit for purpose” and has served on a number of government working parties aimed at achieving this.
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