There is a line, attributed to the mathematician G.H. Hardy, that “if the Archbishop of Canterbury says he believes in God, that’s all in the way of business, but if he says he doesn’t, one can take it he means what he says”. What, then, of the claim that “the hopes of those who voted for Brexit in 2016 have not been realised”? Or that the introduction of the first substantive phase of UK controls on imports from the EU, which started on 1 January, “threaten to wreak havoc on Britain”?
Coming from
remainers, such sentiments would no doubt be dismissed as business as usual,
but in fact the first is from an article in the Telegraph by
Nigel Farage (£)
whilst the second is a headline from the Brexiters’ other house
journal, the Daily Express. More generally, recent weeks have seen increasing numbers of Brexiters voicing disappointment or concern about
the realities of Brexit, a trend given fresh impetus by David Frost’s resignation with its lament for the government’s failure
to “deliver on the opportunities [Brexit] gives us”.
However,
that certainly doesn’t mean that they have actually faced up to these realities,
still less that they have recanted on their support for Brexit. These are not,
in fact, Archbishops declaring their atheism. So what should we make of what
they are saying? And why does it matter?
Denial
and desperation
In general
terms, that things should have reached this point was almost inevitable. On the
one hand, much of the damage and failure of Brexit was predictable. On the
other hand, as I’ve argued many times, the most committed Brexiters are so invested in the idea of being betrayed and of victimhood that no actual Brexit
would have satisfied them. Taken together, this meant it was almost guaranteed
that the idea that ‘Brexit would have worked but it wasn’t done properly’ would
develop.
What was
also almost inevitable was that some Brexiters would simply continue to deny the
damage. So although many of them at least tacitly accept that UK-EU trade has
by definition been permanently depressed by the introduction of new barriers,
others still refuse to do so – an example this week being the high priest of Brexiter
economists, Professor Patrick Minford. He makes the economically illiterate
claim that “[civil
servants] said that actually we'd be damaged because we're making trade with
Europe harder – which is not really true. Because there's no reason for having
a border with the EU making it much harder to trade with the EU; there are no
tariffs because we've got a trade agreement”. It seems he has still not grasped
the significance of non-tariff barriers to trade, nor spoken to the many businesses struggling
with the new import controls, at least some of which will either go out of
business or cease to import from the EU.
That,
in turn, will impact upon prices and
consumer choice, and that is more than a matter of the metropolitan middle-class
being unable to find cheap chorizo (it being an article of Brexiter faith that working-class
people only eat tripe and faggots, just as they never go abroad for their
holidays and rarely visit, still less live in, London). To what extent remains
to be seen, although the Express’s talk of “havoc” is likely to be alarmist.
More likely, as with Brexit economic effects in general, the impact of import
controls will be one of gradual degradation, with each year life in Britain
getting a little worse and a little more constrained than it would otherwise
have been.
This
will be compounded as the successive stages of import
controls are
rolled out over the coming months. However, when that gets mixed in with
pandemic effects and energy price rises, it will mean that there is no great
moment of revelation that Brexit has failed, just the steady accumulation of a
realisation – as is already happening, including
amongst a large minority of leave voters – that this is so.
One way
that some Brexiters seek to head off such an assessment is not so much by denying
as by downplaying the damage caused, principally by pointing to the aversion of
worst-case scenarios (or of trumped-up, hyperbolic versions of such scenarios).
Thus when border controls do not cause visible queues at borders, as has
largely though not entirely been the case
this week, the suggestion is that this means everything has ‘continued as normal’.
But this ignores the invisible effects of goods not shipped because the
necessary paperwork is not ready, or orders cancelled as the new costs and complexities
become clear. It also ignores the way that where trade flows do ‘continue as
normal’, they do so with the higher costs embedded within them, costs which are
ongoing and which have wider impacts, whether that be in terms of higher
prices, reduced competitiveness, reduced funds for investment, or less
employment than would otherwise have been the case.
In this
way, the old battle about Project Fear is still being fought, as if the case
for Brexit were made by the avoidance of predicted damage rather than the need
to show positive outcomes. A particularly egregious example this week was an
attempt by Conservative journalist and commentator Harry Phibbs in Conservative Home to discredit
various predictions, going back to the referendum, about this damage.
It is
such a mish-mash of cherry-picked evidence, quotes and assertions that it would
take literally hours, possibly days, to disentangle and evaluate the validity
of the claims he makes about the warnings that were made and their context, and
the validity of his claims about what has actually happened. I did consider
doing it, but it is just not worth the effort. In any case, much of it rests on
a simple misunderstanding of treating heuristic forecasts of what would happen
‘if everything else remained the same’ as if they were predictions of what would
happen regardless of anything else that might change.
Yet, for
all its inadequacies, it is of interest for two reasons. Firstly because it
shows the desperation of the Brexiters, in the face of their increasingly
discredited project, that they need to rely on the argument that it hasn’t been
as bad as some said it might be. A similar desperation is shown by the
continuing reliance on the now stock lie that Brexit enabled the early rollout
of Covid vaccines, as implied by Phibbs and repeated this week by, amongst
others, the former Chair of Vote
Leave Matthew Elliott.
The
other point of interest is how, with a couple of exceptions, Phibbs’ list is all
about the economic costs (or not) of Brexit. This is important, because it once
again falsifies the other Brexiter argument when those costs are pointed out,
which is that their project was never about economics but simply about
regaining sovereignty. As I discussed a few weeks ago, this is entirely
untrue and their proposition was, rather, that the (supposed) regaining of
sovereignty would yield economic benefits, or at least would have no economic
costs.
The new critique, aka the same old promises
That
latter point is an important one, because it is the key to understanding the
present raft of alarmed commentaries amongst Brexiters about what has (not)
been delivered. For these all entail a recognition of precisely the fact that
sovereignty was promised not just as an end in itself but as something that would
have benefits. Thus, with denial and downplaying of damage now being threadbare
arguments, and forced to confront the lack of such benefits, Brexiters are now
once again promising that great things are, or could be, just around the
corner.
This
bounty is, unsurprisingly, to be realised by a combination of global trade
deals and a bonfire of regulatory red tape, as argued again this week by, amongst
others, Iain Duncan Smith and Daniel Hannan. Alongside
these promises and, again and significantly, in the ferociously pro-Brexit Daily
Telegraph, articles by its Associate Editor (£) and Chief City Commentator (£) have warned,
respectively, that the government is “squandering Brexit opportunities” and
that “time is running out to prove that Brexit is not a historic failure”. Note,
again, that all these supposed opportunities are economic, underlined by the
way that Farage’s piece suggests that “supply-side reform could add 2 per cent
to our GDP”. Whatever Brexiters – and, for that matter, some commentators on Brexit - sometimes say,
their project has consistently made economic claims, relies in large part for
its support upon those claims, and can legitimately be judged in terms of those
claims.
Indeed,
it is only a few months ago, at the time of the Tory Party conference, that Johnson made the claim that rising real wages was a key part of what
the new post-Brexit model of the economy would deliver. In that regard, it is
of note that the latest figures show that,
even as he said this, real wages were static, and are set to continue to
plateau or even fall in the coming years. It was in any case an opportunistic
claim, designed to head off criticism of labour shortages, and little has been
heard of it since. As always with Johnson, it was just a ruse to get through an
awkward moment rather than a serious or sustained commitment.
However,
this latest spate of commentary about the unfulfilled promises of Brexit does
not mean that Brexiters have wised up to its realities. What the likes of
Farage, Duncan Smith, and Hannan are engaged in is a rear-guard defence of their
project which, whilst to a degree accepting that it hasn’t delivered, is also a
doubling-down on the fantasies that it could, with one more push, be delivered.
And, moreover, that if the government were sufficiently committed to Brexit
then that final push would be forthcoming.
A conundrum for Johnson
For
Johnson and his government this emergent criticism presents a conundrum. He can
hardly admit that the Brexit that has been delivered is ‘disappointing’ since
he is the one who delivered it, and is thus reduced to bathetic claims about
re-instating crown marks on beer glasses and the use of imperial measurements
on market stalls, which even Brexiters can see are pretty lame achievements.
And whilst the government may sing the same tune as its Brexiter critics about
future miracles in trade and deregulation it is constrained both by its
continuing failure to deliver them and by the fact that a good section of its
voter base, notably in the ‘red wall’ but also amongst its traditional farming
and business heartlands, don’t want them. Moreover, no one believes what
Johnson says anyway, for the sound empirical reason that he never tells the
truth.
It is
perhaps for this reason that he has followed his earlier, failed, attempts in December 2019 and September 2020 to stop cabinet ministers using the word
‘Brexit’ with the new style guide for the civil
service which
advises a similar silence. For it would indeed be easier just not to mention
the B-word. Although even when unspoken Brexit proves to be a lose-lose, because
whilst remainers mock the national liberation that dare not speak its name, Brexiters are furious that their project
is being treated as if it were offensive or embarrassing.
If Johnson
would rather not mention Brexit and the promises made for it, it is because he
is now reaping the consequences of having been the most prominent person making
those promises. From the very first, attempts to put Brexit into practice have
revealed the falsity of the claims made for it. Only from outside of government
can the fantasies be sustained and that is exactly what is happening again now.
It’s
already clear that trade deals will have no great positive effect, if any.
Meanwhile deregulation is not generally wanted by either businesses and
consumers, and both what it will consist of and what benefits it will bring
remain almost entirely vague.
Fundamentally,
this is because the Brexiter fantasies are incompatible with the facts of
economic geography: the UK sits within the economic orbit of the EU because it
sits adjacent to it in space. That won’t change, because it can’t be changed. There
may well be some minor ways in which divergence from the EU will be both
possible and beneficial. It’s conceivable, though at this point far from clear,
that this week’s announcement on the
post-Brexit farm subsidies system will become one of the more significant
examples. But any programme of major regulatory divergence – on data
protection, say – is only achievable at such huge cost that it would require
an even more reckless government than this one to undertake it.
In a
somewhat similar way, the realities of immigration policy, whilst it is
certainly now very different as regards EU countries as a result of Brexit, in
practice reveal the limitations and contradictions of Brexiters’ magical thinking.
For whereas Farage’s article criticises it for potentially allowing a net rise
in migration and thus breaking the promise of Brexit, businesses find it too
restrictive and, as with the new terms of trade, massively increasing rather
than destroying ‘bureaucratic red tape’ and thus breaking a different promise
of Brexit. Meanwhile some of those most enthusiastic about the freedom to make
global trade deals are the most pant-wettingly
furious when they learn that such deals may, as in the case of India, entail
liberalisation of immigration. Again this illustrates the way that all kinds of
contradictory promises can be, were, and still are made to make the case, and
maximise support, for Brexit but are revealed as incompatible when put into
practice.
So
whilst Farage and Hannan and Smith and all the rest of them can, from outside
government, rail about all the things that should be done – as Johnson would most
certainly be doing as well, if he were outside – the government itself cannot
deliver them and, at best, can only go on promising or pretending to have done
so, exactly as it is doing. This is a dynamic which is built in to Brexit and
will undoubtedly recur for years and probably decades. That is partly because
the economic effects – actual, potential or counterfactual – of Brexit are so
complex and diffuse as to be endlessly debatable. But that dynamic is rather
different as regards the other main ongoing Brexit debate, that over the
Northern Ireland Protocol (NIP).
Northern Ireland: a different dynamic
The NIP
debate is different because, although also complex and diffuse in some ways, it
has a degree of specificity and precision: there is an actual legal text, with
concrete institutional arrangements that flow from it, and a concrete set of
negotiations underway about that text and those arrangements. Going back to Phibbs’ attempt to discredit ‘Project Fear’ warnings, it’s telling that his
‘debunk’ of the warning that Brexit would lead to a hard border between
Northern Ireland and Ireland is the utterly risible one that “the border
remains open”. For, of course, this is the case solely because the UK
government was forced, virtually at diplomatic gunpoint, to accept that this
consequence of Brexit was totally unacceptable and to make some arrangement to
avoid it. The Brexit Ultras have never accepted that any
border was necessary at all, but that fantasy could not be sustained by the
government, hence the NIP and the Irish Sea border.
Clearly,
as the last year or more has shown, the government itself does not genuinely
accept, and certainly has continually tried to wriggle out of, what it agreed. So
far, that has allowed it, a bit as with promises of trade deals and
deregulation, to pretend to the Ultras that a new and perfect Brexit, unsullied
by realities, is just around the corner. Part of that pretence has been that
Article 16 could, and would, be the ultimate route to this nirvana. However,
unlike the promises about trade and deregulation, it cannot be endlessly
deferred, or even to any great extent misrepresented by PR, simply because it is
the subject of concrete agreement with the EU.
We are
still in limbo as to how that will play out under Liz Truss’s oversight, but the
negotiations can’t drag on forever and – not least because of US
pressure – an
invocation of Article 16 currently looks unlikely. It’s all but unthinkable that
the outcome will remove the Irish Sea border and, at that point, all the denial
and obfuscation will, for practical purposes, end. So whilst it can be expected
that Brexiters, and especially the DUP Brexiters (£), will continue
to regard the NIP as a betrayal, and whilst it may go on being a source of
friction between the UK and the EU, it is different to the more open-ended and
nebulous issues of trade and regulation. A permanent segmentation of the UK
single market will be the undeniable legacy of Brexit, something never proposed
to voters in the 2016 referendum.
Why does this matter?
All of
this matters for what happens in everyday politics and economics, but most
profoundly because it is the latest stage in the political battle for the
meaning of Brexit. The Telegraph headline about whether or not it will
be proved an “historic failure” is an acute and revealing one. Whilst they
still don’t understand why, the Brexiters do sense that their project has gone
awry and they do care about the judgment of history – or at least the most
ideologically committed of them do, because they genuinely believe that they
initiated a ‘national liberation’.
That
was always absurd, both in what it implies about EU membership and given the
fact that almost half those who voted didn’t want it. Because of that
absurdity, I think that remainers have never understood that the Brexiters (to
emphasise, I mean the most ideologically committed, hard core of them, not
their camp followers or rank-and-file leave voters – the Ultra Ultras, so to
speak) do believe it. They believed it in 2016 and they still believe that it
will come to be seen as true.
No
doubt the most committed of them will believe it forever more, and will also forever
insist that true Brexit is just one more heave away or, at least, that it would
have been possible had it not been betrayed. However some, at least, realise
that public opinion is beginning to settle permanently to the judgement that it
was a mistake, in which case their life’s work will be forever discredited. The
latest opinion poll finds that 52%
think Brexit is ‘going badly’ and just 15% that it is going well. That has been
the case for about three months now and, whilst it is still very early days
with a lot of neutrals and don’t knows, if it persists for long, it will indeed
coagulate into the judgment of history.
The
Brexiters are right to think that this is what is currently at stake, and the
rest of us should realise it as well. For if – and in my view when - that
judgment pronounces Brexit not just a mistake or a disappointment but an abject
failure and a disastrous folly, then new possibilities will flow.
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