Moody's downgrade might be symbolic - but it's still correct

What does it mean, if anything?

Moody’s downgrade of Britain’s credit rating, from AAA to AA1, is largely symbolic, akin to a sticking plaster falling off a major unhealed gash. It will have no effect on the cost of borrowing, so what does it mean, if anything?

First, it was an anomaly that America and France had been downgraded months ago, and that little bankrupt Britain could sail on merrily, as if the only boat in the race without a leak, was plainly ludicrous.

Second, the fact is that there is a major hole below the waterline in the nation’s finances that isn’t being fixed. But compare 600,000 new jobs being created in the last year by the private sector, of which half are full-time: either the figures are wrong, or thousands of jobs have been lost at the same time, by bankrupt retailers and lost manufacturing output.

Third, sterling was on the slide in the FX markets before Moody’s even blew their faint-hearted whistle. This was after Mervyn King of the BoE voted for more QE, despite the fact that he is already sitting atop one-third of the national debt, and could easily topple off this pile of irredeemable IOUs.

Fourth, the national debt, which was meant to be coming down, is now going back up again. Osborne’s cuts were too little, and now are seen to be too late. But the Cameroons are such a lot of new-drippy Old Etonians that they are increasingly seen as a generation that hasn’t got the balls to pick up a sharp axe and really wield it. No pain, no gain.

As a result of reasons one to four, number five is that the economy is going nowhere fast except down a big, black hole called the IMF. Sort it Osborne, or quit! The answer is simple: slash government expenditure and taxation on March 20, not in some mealy-mouthed way as you are currently posturing, but in a determined and dramatic way.

Slash the Gordian knot of ever-advancing EU-driven socialist-bureaucracy! Cut the chain that is holding back the UK private sector, the people who have had proper jobs all their lives! Unlike you miserable lot in government, who have never had a proper productive job at all.

After all, the only man in Britain who is going to say you are wrong to do such a thing, is the utterly stupid, pathetic and ludicrous Ed Balls. And he is the one who assiduously dug the nation over many years into this great hole in the first place! But then, I suppose, he has never had a proper job either - a kindred spirit, perhaps?

This first appeared on Spear's.

Photograph: Getty Images

Stephen Hill writes for Spear's

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Like it or hate it, it doesn't matter: Brexit is happening, and we've got to make a success of it

It's time to stop complaining and start campaigning, says Stella Creasy.

A shortage of Marmite, arguments over exporting jam and angry Belgians. And that’s just this month.  As the Canadian trade deal stalls, and the government decides which cottage industry its will pick next as saviour for the nation, the British people are still no clearer getting an answer to what Brexit actually means. And they are also no clearer as to how they can have a say in how that question is answered.

To date there have been three stages to Brexit. The first was ideological: an ever-rising euroscepticism, rooted in a feeling that the costs the compromises working with others require were not comparable to the benefits. It oozed out, almost unnoticed, from its dormant home deep in the Labour left and the Tory right, stoked by Ukip to devastating effect.

The second stage was the campaign of that referendum itself: a focus on immigration over-riding a wider debate about free trade, and underpinned by the tempting and vague claim that, in an unstable, unfair world, control could be taken back. With any deal dependent on the agreement of twenty eight other countries, it has already proved a hollow victory.

For the last few months, these consequences of these two stages have dominated discussion, generating heat, but not light about what happens next. Neither has anything helped to bring back together those who feel their lives are increasingly at the mercy of a political and economic elite and those who fear Britain is retreating from being a world leader to a back water.

Little wonder the analogy most commonly and easily reached for by commentators has been that of a divorce. They speculate our coming separation from our EU partners is going to be messy, combative and rancorous. Trash talk from some - including those in charge of negotiating -  further feeds this perception. That’s why it is time for all sides to push onto Brexit part three: the practical stage. How and when is it actually going to happen?

A more constructive framework to use than marriage is one of a changing business, rather than a changing relationship. Whatever the solid economic benefits of EU membership, the British people decided the social and democratic costs had become too great. So now we must adapt.

Brexit should be as much about innovating in what we make and create as it is about seeking to renew our trading deals with the world. New products must be sought alongside new markets. This doesn’t have to mean cutting corners or cutting jobs, but it does mean being prepared to learn new skills and invest in helping those in industries that are struggling to make this leap to move on. The UK has an incredible and varied set of services and products to offer the world, but will need to focus on what we do well and uniquely here to thrive. This is easier said than done, but can also offer hope. Specialising and skilling up also means we can resist those who want us to jettison hard-won environmental and social protections as an alternative. 

Most accept such a transition will take time. But what is contested is that it will require openness. However, handing the public a done deal - however well mediated - will do little to address the division within our country. Ensuring the best deal in a way that can garner the public support it needs to work requires strong feedback channels. That is why transparency about the government's plans for Brexit is so important. Of course, a balance needs to be struck with the need to protect negotiating positions, but scrutiny by parliament- and by extension the public- will be vital. With so many differing factors at stake and choices to be made, MPs have to be able and willing to bring their constituents into the discussion not just about what Brexit actually entails, but also what kind of country Britain will be during and after the result - and their role in making it happen. 

Those who want to claim the engagement of parliament and the public undermines the referendum result are still in stages one and two of this debate, looking for someone to blame for past injustices, not building a better future for all. Our Marmite may be safe for the moment, but Brexit can’t remain a love it or hate it phenomenon. It’s time for everyone to get practical.