Getting Brexit over the line required an unholy alliance of different groups and interests with often strongly divergent views on what they wished to achieve.
Small state, low tax, free trade libertarians do not make natural bedfellows for anti-immigrant, nationalistic protectionists, yet this was the coalition required to give Brexit its majority. In the event, Brexit has failed to enable either of these two conflicting visions. Instead, we’ve ended up with the worst of both worlds. Substantially higher public spending and taxes go hand in hand with a regulatory burden that almost unbelievably makes business leaders long for the comparative freedoms once enjoyed within the European Union. If Brexit was meant to
tame immigration, in practice it has done the very reverse. Nobody voted for the Boriswave – yet this is what freedom to set our own border controls delivered.
Still, at least we’ve been able to negotiate
our own trade deals. That must be worth something, mustn’t it? Sadly, the impact is judged by the OBR to be too insignificant to qualify as a meaningful positive for medium term economic growth. Lest it be thought the OBR is being deliberately unhelpful, its judgement is based on the Government’s own internal assessment of the benefits, which economists consider to be at best marginal.
If Brexit was supposed to be a moment of national economic renewal, it has comprehensively failed to deliver as it was supposed to. Maybe the OBR is being too pessimistic in downgrading its medium term forecast for productivity growth to just 1pc a year – but even with the wonders of AI, I wouldn’t bank on it.
Despite the downgrade, it is at the top end of most outside assessments and may therefore prove too optimistic.
Ironically, the one thing Brexit has delivered is an old-school Labour Government intent in its high-tax, high-spend ambitions on making us more like Europe, not less so. Plus ça change, plus c’est la même chose.