To say that this fresh-faced government was full of expectations, especially when charged with delivering Brexkt, despite the belligerent efforts by the opposition and many Tory MPs to block its progress, was an understatement.Who would have believed that come March 2020 Covid 19 would have ruthlessly savaged the UK economy in the manner it did.
The FTSE 100 fell to 5190 on 20th March 2020 – down 29% in a week. That was the financial damage incurred, which by any standards, was humungous.Then there was the small matter of about 1.5 million people, who were developing their own enterprises, who did not qualify for furloughing. Many Europeans were either made to feel unwelcome or thought regulatory requirements to remain in the UK were too draconian. The Government had very poor relationships with the EU.
UK inflation hit 11% and it is only stubbornly dissipating. This has led to higher interest rates – twelve rises in two years to 4.5%, with 5.5% not out of the question by November 2023. The Government has put in place tax breaks for capital allowances and the Chancellor and Michael Gove are encouraging ‘levelling up’ around the country.The Government needs to ease up on the bureaucracy for companies that want to trade with Europe with less draconian paperwork, as well as working closer with the EU, regarding the mutually beneficial easing of tariffs. The Northern Ireland Protocol agreement, if it reaches the statute book, will certainly help to achieve that goal.