First shots fired in post-Brexit battle

On Wednesday this week, as Washington DC was preparing, on the one side, and not (on the other), for the substantially white privilege ‘revolution’ that did, in contrast, turn out to be of the televised type, the soon-to-be-Lord (Daniel) Hannan, Lima-born and raised and privately educated, published his list of regulatory ‘barriers’ that a post-Brexit UK could ‘disapply’ (trigger warning: post is on Conservative Home). These include (as listed):

  • Temporary Workers’ Directive
  • the REACH Directive
  • the End of Life Vehicles Directive
  • the droit de suite rules and other regulations that hurt London’s fine arts market
  • the Alternative Investment Fund Managers Directive
  • chunks of MiFID II
  • GDPR
  • the bans on GM.

Alphabet soup apart (and I’m not going to decode any of it here), this is quite astonishingly specific and betrays, in part, Hannan’s own petty concerns, some apparent pay-offs to mates and some things of which I suspect he actually has rather little working knowledge.

None of this is of course a surprise: the only surprise is that the Working Time Directive – setting out rest periods and prescribing minimum rest breaks and leave entitlement for workers – commonly thought to be the first target of Brexiteers, isn’t on the list (though Hannan clearly sets out that the EU directives he sets out are non-exhaustive, in which case the WTD surely hasn’t been forgotten). In a move that was clearly choreographed, Boris Johnson held a call with business leaders later the same day asking them to come up with ideas for changing the regulatory environment because ‘the UK would need regulatory and legislative change’ (no ££).

It’s clearly about time we had another ‘red tape challenge’: with two this decade (in 2011 and 2019) so far, on top of certain aspects of the 2012-2014 ‘balance of competences’ review, and the 2014 consulting on ‘gold plating’ the TUPE regulations, there is clearly a mini-industry (not least in media headlines) needing to be fed and sustained. Indeed, you’d almost think that asking the question, rather than coming up with anything practical to do, was the point. Businesses are, by the way, likely to use the opportunity to have a varied but wide-ranging moan over the costs of employing young women who then become pregnant – a somewhat flippant response, perhaps, but one which also has at its heart the implicit core of the problem as to why these ‘challenges’ continue to come around regularly with little apparent effect in practice: the costs to businesses of continual labour turnover as a result of poor employment policies are significantly greater than the costs of complying with regulations which actually raise labour standards; while the regulation that remains in place overwhelming has a clear, and useful, function. For all that it walks around with a target perennially pinned to its back, regulation not only protects but also supports ourselves as citizens in terms of our health, the environment within which we live and the cohesiveness of our society. That is why it is hard to get rid of, despite all the noise its reduction is able to generate.

It will be interesting to see who is listening to Hannan – who is, by the way, an adviser to the Board of Trade as well as President of the Initiative for Free Trade (a well-connected think-tank whose mission is to use Brexit to advance the case for revitalising the world trading system). If Hannan does get his way then, on the strength of this list alone, the Brexit that results will clearly be that of the elites.

Other than that concern, the central significance of Hannan’s post is that it highlights that Brexit will not be over for some time to come – indeed, that we are only at the beginning of a very long and hard road ahead. Given the current policy vacuum at government level, on top of the inability of Brexiteers over the last four/five years to indicate what Brexit should look like other than in terms of simple (‘side of the bus’) slogans, there is inevitably space for people like Hannan to fill with such concepts as deregulation (most obviously, but no doubt among others). Furthermore, the free trade agreement signed on Christmas Eve and the joint UK-EU commissions that it envisages gives plenty of space not only for debate over the tariff costs in terms of a UK which actively seeks divergence from European standards; but also in terms of how that agreement can be developed and improved upon not least in terms of supporting workers’ rights in ways that reflect social policy improvements within the EU. Additionally, while the free trade agreement might solve problems over tariffs, it is – as businesses are already starting to find out – the non-tariff barriers that the single market brought down that are the key to trading successfully. Here, not least in the context of deregulation, there is the rising amount of realisation (see here, for instance; or otherwise here) that, at least in this first week, Brexit actually means more red tape for industry, not less. On top of all this, and rather less prosaically, there is the notion of full independence for Scotland, on which this blog will no doubt have more to say, as well as the question of a united Ireland, the growing YesCymru movement and the existence of support for improved democratic representation within England itself. The price of ‘sovereignty’ is indeed likely to be a much smaller territory over which that dominion reigns.

All these are ways in which the future shape of the UK will be competed over as a result of the Brexit bow wave. Politically therefore, the notion that the word ‘Brexit’ can be avoided – in ways akin to Johnson’s own attempts this time last year to ban the word – is not only itself simplistic but also naive. Labour may not now need to define what Brexit means – but it does need to define what the UK should look like in its wake. The first shots in that war have, at the very least, been fired by Brexiteers which provides some cover for Labour being able to say the word again; and, most certainly, to ensure that the vacuum is filled not only by the likes of Hannan.

In the meantime, it is worth noting that such shots were fired to (not at!) an exclusively business audience. In the context, that’s probably unremarkable in itself – but I wonder how that will go down amongst new-blue voters in so-called ‘red wall’ seats? Was that really the Brexit they thought they were voting for, either in 2016 or in 2019? And did they really believe, in 2019, that they were voting for an end to Brexit?

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