Bad news for the scaremongering, pro-centralisation, anti-liberty people in the European Union (and here in Britain). The grandson of Toyota’s founder has reassured Britons that the company will make cars in the Midlands even if the UK decides to leave the EU. The announcement from Akio Toyoda yesterday belies political claims that a “leave” vote will lead an exodus of foreign manufacturing and capital from the UK.
Of course, you can’t know for certain what businesses will do if Britain leaves. But you can safely assume that businesses will do what they always do when making long-term decisions: they’ll set up in places where capital markets are deep and where labour costs are low, or are at least competitive, and it’s not hard to hire and fire people. Ease of doing business, cost of capital, mobile and skilled labour markets… there’s no reason to think business decision making will change on Brexit.
What about business?
That’s the real question though: will it be much harder for small and medium sized British firms to do business with the EU if the UK leaves? Will they be able to do business at all? Do they do much business with the EU at all right now? Would they do more business with the rest of the world, relieved of EU regulations and red tape?
These are all serious and important questions that affect the vote you’ll make on whether Britain should stay or leave the EU. Charlie and I are looking at them. By “looking” I mean we’re talking to business people to see what they’re saying. Not what the politicians are saying. Toyoda’s news yesterday was good news for Britain. Not so good for European Commission president Jean-Claude Juncker.
What’s your biggest Brexit worry? Is it the City losing out to France and Germany? Is it Britain losing jobs? Perhaps Britain’s influence in the world will be reduced? Is it a sterling crash and a balance of payments crisis owing to a large current account deficit? Let me know what’s keep you up at night about Brexit.
Category: Brexit