A few years ago I interviewed the boss of a US software company. At the end of the discussion he mentioned how his business had moved most of its development operations to London from San Francisco.
I was surprised at this – while San Francisco is one of the most expensive places in the world to do business, London is even pricier again.
“We can get labour in the UK,” explained the CEO. “In the US if I want to bring in some developers I’ll be tied up by immigration for months, if not years. In London, I can get on the phone and have a bunch of coders on the plane from Barcelona tomorrow.”
That ease of access is now threatened by the Brexit vote, should the UK leave the EU and give up on the free movement of workers across the continent then one of Britain’s core advantages is lost.
Brexit is a historic mistake by middle England that now threatens to see the UK disintegrate as Scotland leaves and the Northern Ireland conflict reignite, the tech industry though will probably be one of the first victims.
For the EU, this is a warning that reform of its institutions has to be a priority. One of the ironies of Britain’s vote is the monstering of Greece, Spain and Ireland following the 2008 global crisis that cost the EU much of its popular support was partly to protect London’s banks.
The bigger issue though is the British voters’ distrust of institutions and elites – something that’s driving Donald Trump’s rise in the US.
We live in interesting times.
Sorry Paul, we share similar views on many things but not on this.
For many of us who voted Leave, this was not about immigration or the economy but about who makes the laws under which we live and how to get rid of them if we disagree.
Tony Benn’s 4 questions to those in power asked what power they had, how did they get it, on whose behalf do they wield it and how do we get rid of them if we disagree?
The key questions being the two “how” questions; how did the 27 EU commissioners get their power? They were appointed. How do we get rid of them? We can’t.
Nothing else matters. We either live in a democracy or we don’t. The currency exchange rate, stock market performance, etc. are completely irrelevant unless you actually don’t care about the 801 years of Common Law which chipped away and gave rights back to the individual not the state.
If immigration laws are hamstringing the economy, we can simply change them now without asking 27 other countries for their approval.
I agree with you on the EU’s ‘democratic deficit’, TNA and this is why I believe Britain’s vote will be the catalyst for major reforms in Brussels.
That said however, much of Middle England that voted to leave has been long neglected by remote and unapproachable London based political, public service and business elite.
England’s vote is following a pattern seen across the Western world – the US with Trump being the starkest example – where the losers from the last thirty years of corporatism are pushing back against what they perceive to be the threats to their future.
For England, they now have to deal with the consequences of that vote. I’m not sure a sepia tinged world where Bobby Moore is scoring goals against the hun, the Queen is on the Home Service and everyone breaks into a chorus of ‘We’ll Meet Again’ and other Gracie Fields greats before heading home for a roast of Australian lamb with New Zealand butter is going to quite cut it in the 21st Century.
Have a listen to Dan Carlin’s podcast “revenge of the gangrenous finger” on his Common Sense series. Covers the disconnect between voters and western politicians quite well.