We have seen that the economy grew during the months leading up to the EU referendum, albeit at a slower rate than predicted. We also saw a surplus of £1 billion in July, the first full month since the referendum. However, this fell short of what was expected with economists previously predicting that it should have been nearly double that at £1.9 billion. This means that the Government could fail to meet its borrowing target by nearly £20 billion. The numbers simply mean that the Government will push more and more austerity measures on to hard working families.
Whilst there are some promising signs, it is too soon to tell what the real impact of Brexit will be. All the leavers who are boasting about the ‘Brexit lie’ must understand that the real impact of leaving the EU won’t be fully felt until Article 50 is triggered. That is why we need real direction from the treasury. With the UK Parliament only just returning from the summer break there has been little movement. Most economists still maintain that there will be an economic downturn even if it is just in the short-term, so we need to understand how to weather the coming storm. I am meeting with small businesses and consortia across the West Midlands to understand their needs so we can try and minimise the damage to the lives of normal people.
If you have any questions please get in touch with my team who will be happy to assist you.
Taken from Neena Gill‘s September newsletter. Neena is one of two Labour MEPs for the West Midlands. She is @NeenaGmep on twitter.