Author Archives: GovWorldMag

The UK is firmly committed to NATO which remains the main way that Europe’s defence is organised. NATO ensures the participation of the USA. It preserves individual country control over when and whether their forces will be committed to NATO missions, whilst also including the important NATO guarantee for members  to assist if any NATO country is threatened.

The EU is now pushing towards more defence integration with an EU role. The aim is to bring together the defence industries of the member states, to enter common procurement programmes, and to move from there to defining more EU  defence operations. The USA is in two minds about this development. On the one hand the USA would like the European countries in NATO to make a bigger contribution to their own mutual defence. On the other hand the USA does not wish to see the NATO system undermined in any way.

There are doubts about whether the EU has in mind spending more and buying more equipment. It is more likely they wish to exercise more control over the  budgets that member states already have. The UK out of the EU should examine each of the main procurement projects and see if it makes sense to join as a co purchaser and contributor to the project, where the EU would like the UK’s purchases and or expertise. The UK can also offer to join EU missions and assist with troops and equipment where that is in our mutual interest and compatible with NATO’s views and role. What we need to avoid is being sucked into a system of defence procurement and mission definition that impedes our role in NATO or leaves us without central capabilities we need as an independent country.

Despite the best efforts of the Bank of England to slow the economy, the latest figures for manufacturing output were good. In the last three  months to September industrial output rose by 1.1% . It was up by 2.7% on the year. September was a particularly strong month with a gain of 0.7%. the UK is a great base for manufacturing with a competitive exchange rate and a skilled workforce capable of driving industrial success. Inward investment has remained at good levels reflecting this.

We also read last week that Facebook is looking for 700,000 square feet of office accommodation in London to help its big expansion plans here. Google already has 1 m square feet of space at Kings cross. The new US giants of the digital world are growing fast. They  like the UK as a go ahead destination for their plans.

A positive budget for business and for consumers would add to the progress we are making,  as would a pro growth monetary policy. The opportunities for inward investors are considerable  as the UK considers how to use its new freedoms once out of the EU to create stronger industries in areas like fishing, farming and energy where EU policy has acted as a constraint.

I have often drawn attention to the contrast between what is happening and what was forecast by establishment commentators were we to vote for Brexit. Far from costing us jobs and losing us investment, we have witnessed jobs up and investment strong.

There is great scope for investment in import substitution, as we seek to put some more balance into  the large imbalance of trade with the EU which has built up during our membership.