After the vote to leave the European Union, the UK is in uncharted waters both politically and economically. The TUC did not seek this outcome, but accepts the decision of the British people. Yet with so many still so scarred by the effects of the 2008 financial crisis, working people and their communities must not pay the price – again – of economic slowdown and uncertainty.
In this interim period before a new Conservative leader begins the process of leaving the
EU, the government must act decisively to minimise the negative impact on the
economy of extreme uncertainty. The governor of the Bank of England’s statement and
actions on the morning after the referendum illustrate how decisive action can help
protect financial markets. But there are limits to how much can be expected of monetary
The chancellor’s statement on Monday 27 June was also welcome, but the
reaction of the markets demonstrates the need for a bolder strategy. And of course, the
TUC does not agree with the chancellor that the fundamentals of the UK economy are
strong: one need only point to the concentration of wealth, jobs and investment in
London and the south-east and the decades-long decline in manufacturing to see that
the UK is exposed to significant risk compounded by the economic uncertainty of a vote
to leave the EU.