Britain’s Economic and social model after Brexit
Britain’s social and economic model will remain to some degree close to European standards as it looks like it would become unrealistic for the electorate to divorce themselves from a recognisably European social system and thrust themselves in the mindset that governs the ultra-liberal economics of Singapore or Hong Kong for example. Firstly, the energy that It would bring to the Corbynite left would be too strong to make it right from a pragmatic perspective. The ends of such a policy platform of ultra-light touch Singaporean economics would not practical as it would cause great social pressures when inequality is a totemic economic and social issue for both policy makers and Politicians.
The consequences of Brexit could have the economic effect of making business more reliant on domestic not international labour supplies. This could have the result changing fundamentally the UK’s economic and social system. Firstly, with more competition for labour this in addition could increase pressure for wages to rise to compensate for the lack of cheap international labour. Furthermore, this could result in in greater bargaining ability for skilled workers. Another structural dilemma in the UK economy is the sizeable nature of the low skill section of the economy in some sections of the service sector. The effect of inflation has been that for some businesses they have been significantly more creative in sourcing materials domestically as the depreciation of the pound has fed into their businesses.
the foundation of the UK’s social model after Brexit is predicated on the basis that public services such as education and health will at some time receive additional resources most likely due to the redirection of the UK’s EU contributions to these services that make up what are essentially a leveller. That will strengthen government social policy options after Brexit with the redirection of EU contributions. To some degree there might be changes to employment regulation as EU law becomes UK law. The PM has stated that as we leave the EU workers’ rights will be strengthened not weakened. This is an important government priority shown by its intentions to formalise the rights of those who work on short term contracts for companies such as Deliveroo which shows the direction of travel for the UK’s social model for the future, one that adopts a pragmatic policy to the changing nature of work and innovation to adapt the flexible nature of the UK’s labour market that is both a gift and a handicap to the economy through the result poor productivity figures that have disappointed.
Domestic political pressure will ensure that the UK retains close to its existing social model. This will radically reduce the chance of the UK moving towards an economic model of the far east like that of Hong Kong or Singapore. The Issue of possible labour shortages will result in Employment Law becoming a key issue in the social model of post Brexit Britain.
By Frederick Kearey
The Reformist 