The magnificent SEVEN
Our City Editor outlines his reasons why Britain can be the envy of the world in the 2020s . . . and beyond!
Britain has a natural tendency towards despondency and the three-and-a-half years since the EU membership referendum have been blighted by pessimism and division. the truth is that, in or out of the European Union, the citizens of the United Kingdom often under-estimate all the terrific things we have going for us.
Britain needs to invest in its future if it is to maintain its competitive edge with ultra-fast broadband, more support for r&D and closer attention to the national interest when it comes to takeovers if the country is to grow and prosper.
nevertheless, the UK’s free market creative, scientific and financially driven economy has elements that are the envy of the world.
Exiting the European Union was never going to be easy. But there are great reasons to look forward to a more prosperous future in 2020 and beyond.
Here are my Magnificent Seven reasons to believe in Britain.
1) RECORD JOBS AND HOPE FOR NORTH OF ENGLAND
in SPITE of a lengthy period of uncertainty and sub-octane growth in output, employers have felt confident enough to take on workers in record numbers, giving Britain an unemployment rate of just 3.7pc.
Boris Johnson is no miracle worker. But his election with a surprisingly big majority should provide much-needed domestic stability and certainty after several years of indecision which made Britain a harder place to invest.
Among the encouraging aspects of the election was the sharp focus on the north of England and Midlands where the ‘gross value added’ – an official measure of contributions to the national wellbeing – has lagged badly.
it may be impossible to put this right in one short, five-year parliamentary term but redefining priorities should not be hard.
the power and optimism of antony Gormley’s ‘angel of the north’ could become infectious. all of this is a magnificent first reason to look towards sunnier horizons.
2) ROAD TO BREXIT
THE path is clear to signing off on the Johnson deal by January 31, 2020, and forging a fresh trade arrangement by the end of next year. the certainty of Britain’s new future should be enough to instil confidence and unleash the £500bn or more of cash sitting idle in corporate bank accounts.
Much is made of the difficulties of achieving a trade agreement in the limited period of time. But Britain isn’t at a standing start. after half a century inside the EU, the rules and regulations are parallel.
plainly, some kind of deal on services – in which Britain shines – would be brilliant. But given that most free trade deals do not include services, this is seen as the golden, long-term aim for most advanced economies. the UK could dial itself in earlier than competitors.
3) SCIENCE AND TECHNOLOGY
THERE is a tendency to denigrate education in Britain even as the country rapidly moves up the OECD rankings.
What is undeniable is the quality of research in Britain. the spires of our oldest centres of learning in Oxford and Cambridge, together with imperial and University College in London, represent the best of research in Europe.
in addition we have the Francis Crick institute in London – erasing the barriers in cancer research – and the next ranking russell Group universities spawning new technology on a daily basis.
UK software engineers are the masters of writing the code and algorithms driving this new tech – from price comparison sites to payments systems and online bank accounts.
4) PHARMA AND MEDICINES
DON’T say it too loudly, in case overseas predators lay in waiting, but in astrazeneca, run by Frenchman pascal Soriot, and GlaxoSmithKline, where the chief executive is Emma Walmsley, the UK has two of the most successful pharmaceutical and vaccine discovery powerhouses in the world.
it also has a good second rank of medical firms, including devices group Smith & nephew, consumer health outfits reckitt Benckiser and GSK’s joint enterprise with pfizer.
AZ is a leader in pioneering immunology treatments for the most lethal cancers, using healthy cells to overcome the multiplication of affected tissue.
And GSK is the world leader in developing vaccines combatting diseases ranging from cervical cancer, to shingles and meningitis. it is also working on new TB treatment – a godsend for the developing world.
5) CREATIVE BRITAIN
THE creative sector contributes up to 10pc of our national output and has been the fastest growing part of the economy since the financial crisis. in film and television the James Bond and Star Wars franchises, largely filmed and created in Britain, are leading edge. the new owner of Sky, america’s Comcast, is planning a £2bn investment in the largest film studios in Europe at Elstree, with 14 different stages. JK rowling is a one person mega industry in books, film and theatre. and our rock stars – including adele, Ed Sheeran and Grime artist Stormzy – are global sensations. the UK is also the world centre for the video gaming industry generating billions of pounds of exports each year.
6) CITY AND FINANCE
Britain has a world leading financial services sector which, in 2018, generated £132bn of income for the economy, exports of £60bn and a trade surplus of £44bn.
the London foreign exchange market is by far the largest in the world, turning over an astonishing £2.9trillion a day.
there are high earnings for executives, traders and City analysts and firms. together they contribute £75bn to the nation’s taxes each year, helping to pay for public services such as the NHS.
7) AEROSPACE
THE UK punches well above its weight in the skies. in spite of problems with the trent engine, rolls-royce has more engines on order for wide-bodied jets than its much larger american rivals GE and pratt & Whitney.
it is also moving full speed ahead with next generation electrical aircraft and plans to have them in service on island-hopping routes in the not too distant future.
in BAE the UK has a defence and aerospace champion which has Europe’s leading fighter jet platform assembling the tornado, typhoon and the next generation tempest with markets from the Gulf to the pacific nations.
But it has been cavalier in allowing technology to drift overseas with the takeovers of Cobham and satellite trailblazer inmarsat.