Britain’s economic prospects and international standing continues to be knocked by Brexit. Here are six recent examples.
Au revoir, agencies
And indeed, vaarwel! A complicated Brussels bidding process has decided the London-based European Banking Authority (EBA) and European Medicines Agency (EMA) will be relocated to Paris and Amsterdam respectively. Almost 900 EMA staff and over 100 EBA staff, mostly high-skilled EU nationals, and their families will make the move across the Channel. It’s a hit for London’s scientific and financial prestige, as well as its economy. The agencies act as magnets to their industries. For example, EMA hosts an estimated 36,000 scientists and national regulators each year.
China eyes Airbus
The design and manufacture of Airbus wings, one of the crown jewels of British industry, is at risk of being nabbed by China thanks to Brexit. Every part is exported into the EU and would be hit by any extra border friction and customs costs, Airbus UK’s Katherine Bennett told MPs. The company already makes wings in China, and the Chinese – along with several other countries – are “knocking at the door” in a bid to capitalise on the UK’s Brexit confusion. Airbus employs 15,000 people in the UK.
Paris banking on a Brexit boost
The EBA announcement was accompanied by Goldman Sachs’ chief executive confirming the bank would have two new EU hubs after Brexit – Paris and Frankfurt. While careful not to mention staff numbers moving from London, Lloyd Blankfein suggested Paris could do particularly well, saying he could imagine “many Americans would prefer to live in Paris than in Frankfurt for many reasons”, and praised Emmanuel Macron’s drive to reform France’s economy.
Week’s wages lost
Meanwhile, ordinary Brits have lost a week’s worth of wages thanks to inflation caused by the devaluation of the pound after the Brexit vote. Higher prices mean an average worker’s annual pay has been cut by £448, according to a report by the LSE’s Centre for Economic Performance. The wage squeeze will lead to the first drop in Christmas spending in five years, according to research compiled by IHS Markit for Visa.
Tech trauma
Hundreds of people have rejected jobs at UK tech start-ups due to uncertainty over their status following the Brexit vote. A third of entrepreneurs reported losing a prospective hire since the June 2016 vote, according to a survey by industry body Tech London Advocates.
Animal pain amendment gets thumbs down
And finally, bad news for animal lovers as MPs voted to reject carrying over into UK law an EU text on animals feeling pain or emotion. This happened as part of the ongoing Withdrawal Bill battles in Parliament, as the government tries to bring EU laws onto the UK statute book in time for Brexit. They argued that animal sentience was already covered by the Animal Welfare Act 2006. The RSPCA disagrees, calling the decision “shocking”.
See last week’s round-up of the toll Brexit is taking here.
Clarification: The section on animal pain was changed to make clear that it was an amendment to the Withdrawal Bill that MPs rejected rather than the idea that animals feel pain and emotion.