There is a certain similarity between die-hard Brexit supporters and the proverbial ostrich reputedly hiding its head in the sand. They counter remainer arguments by saying that the economic cataclysm that some remain campaigners prophesied has not materialised and the UK economy is still growing. Such people are immune to logic and fact. The UK economy has slipped from the fastest expanding in the G20 to the slowest and inward investment has taken a hit and the UK still enjoys the benefits of being in the EU.
One thing business hates is uncertainty. Investors tend not to put their money in new ventures on the hope that things might turn out well (this is called gambling). The latest evidence for the deep harm caused to the UK economy and job prospects is revealed in a sharp decline in new registration of EU-based companies in the UK. According to an article in The Guardian, there have been 48; 38 and 52% declines in registrations of French, Belgian and Dutch companies, respectively, in the UK in the 2016-17 financial year than in the previous financial year.
Another sign of Brexit turbulence can be seen in a precipitous drop in inwards investment to the UK. These investment funds are used for construction of new plant/facilities or for buying UK businesses. According to the OECD, direct foreign investment into the UK suffered a 90% hit in 2017 – however, this was on the back of very good figures for 2016. The underlying reason for this is the uncertainty surrounding Brexit and post-Brexit trading conditions.
EEF, a manufacturers’ organisation reports a 17% decline in job applications since last year and notes that 13% of its membership report an increase in EU staff leaving their jobs and returning to their country of origin; precipitating a shortage of skilled staff which cannot be met from UK sources easily.
On a daily basis, the economic harm caused by Brexit becomes more difficult to deny.