FINANCE

Brexit – the prism through which policy will be refracted

While austerity once defined local government policy, Michael Burton says chief executives can now expect the Brexit debate to dominate national thinking

For six years UK politics and government policy – especially when it concerns local government – has been defined through the prism of austerity. Now politics will be defined through the prism of the Brexit debate which will dominate Westminster and Whitehall until at least 2019. This is not to say the management of the public finances will take a back seat or that austerity becomes history: this will continue to be a priority except that instead of Treasury policy being a reaction to the 2008 fiscal crash, it will now be a response to how the UK negotiates its departure from the EU.

The prime minister has already laid out some red flags: Brexit means Brexit, there will be no second referendum, no Parliamentary vote on invoking Article 50, and no Australian points system. Her biggest decision has been not to hold a General Election. Admittedly because of the Fixed Term Parliament rule she would have needed a Commons vote which might have been a messy business since neither Labour or the SNP have any vested interest in another election. However, it does mean she has to survive on a small majority of 17 making her, like John Major, exposed to backbench revolts from Tory Brexiteers who will continue to mount a rearguard battle against any perceived backsliding from a complete breach with the EU. It also exposes Mrs May to other backbench revolts such as happened under her predecessor over enforced academisation which could of course, be helpful, should local government find itself saddled with contentious legislation.

Michael Burton

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