Does Brexit mean trouble for the UK economy?

Does Brexit mean trouble for the UK economy?

As the clock ticks down for the last opportunity to secure a deal with the European Union, the potential for the UK crashing out looks alarmingly high. The grim truth, is that Brexit could mean a lot of trouble for the UK economy in the short term. Covid-19 has already beaten the nation’s resolve to smithereens, and Brexit is something that a lot of people could really do without having to consider.

While the average person is busy trying to find Christmas presents for their family, a lot of business owners are frantically trying to prepare for life outside of Europe, whether there is a deal or not. With the addition of the pandemic, the business world in the UK has had a terrible year.

So why does Brexit mean trouble for the economy? In the short term there is likely to be a lot of uncertainty. UK businesses have yet to fully understand any impact that will be felt across UK industries. That, combined with people not knowing how their work situation will prevail means that a lot of purses and wallets are being held firmly shut by the British people. The average person just can’t afford to be frivolous now. The pandemic has left a huge swathe of self employed people that haven’t even had any income during lock down periods without any support.

All of this means that it is almost certainly going to mean a contraction of spending on the high street. For many, a resolution to the trade agreement would at least give a clear direction to where the land lies in the not to distant future.

Politically, the government is damned if they do, and damned if they don’t. Whatever the outcome, the Labour party and press will give the conservative a hard time. If this issue had not been made so political and the parties united in an effort to secure a strong exit from the union, one has to wonder if we would be in this mess at all.

The scary thing is, that a lot of the worry and constant news about whether a deal is likely or not, could just be a bargaining chip. Just a strategy to negotiate a stronger result. With the United Kingdom and the European Union in a stand off over fishing waters, neither side wants to be seen to give leigh way. Hopefully, the almost inevitable impact will not be too deep cutting for the UK economy. The nation’s working class will likely be the ones that pay the ultimate price. The United Kingdom has never been so divided.