Brexit boost as jobs soar to record high

BRITAIN received a new Brexit boost yesterday as figures revealed a “buoyant” economy, with record employment and rising business confidence.

This is the latest evidence to defy gloomy predictions about the impact of the vote to leave the European Union, though there were also warnings of potential “stumbling blocks”.

The Centre for London think-tank said jobs in the capital hit a 5.9 million high at the end of June, 1.9 per cent up on the year before and the highest since such records began in 1996.

Unemployment was down 0.4 per cent since last year at 255,000 and business confidence measured by the Purchasing Manager’s Index was the highest since October.

There was also a significant increase in people leaving London, while fewer foreigners were arriving. London had its slowest rate of population growth for more than 10 years in the year to mid-2017 along with fewer National Insurance registrations.

High house prices and rent – and possibly pollution and crime rates – appeared to be driving people in their 20s and 30s out of the capital and Brexit uncertainty could also be denting London’s appeal, researchers said.

The think-tank’s Silviya Barrett said: “The strong employment numbers and buoyant economic performance are encouraging.

“However, declining pay levels and stalling productivity are signs that there could be stumbling blocks on the horizon. The data also indicates population growth may be levelling out, perhaps reflecting post-EU referendum uncertainty or the beginning of a longerterm trend.”

She added: “While some might interpret the drop in migration and population growth as easing the pressure on infrastructure and public services, in the longer term it has the potential to threaten their viability and significantly damage our economy.”

London Assembly Tory economy spokeswoman Susan Hall seized on the figures to accuse Mayor Sadiq Khan of “talking down” the capital and Brexit.

She said despite the good economic news “we have a mayor who takes any opportunity to talk the capital down and portray London after Brexit as an economic disaster”.