Skip to content
Search AI Powered

Latest Stories

Johnson vows 'long overdue' revamp of UK's post-Brexit economy

Johnson vows 'long overdue' revamp of UK's post-Brexit economy

British prime minister Boris Johnson rallied his Conservative party faithful on Wednesday (6), vowing a far-reaching overhaul to wean the UK economy off cheap foreign labour after Brexit.

Shrugging off panic buying at petrol stations, bare supermarket shelves and retailers' warnings of a bleak Christmas to come, the Tory leader said the short-term pain was worth it.


Closing the Conservatives' annual conference, their first in-person event since 2019 because of the coronavirus pandemic, Johnson was on characteristically bullish form with an array of partisan zingers hurled against the opposition Labour party.

There was little new policy detail in the 45-minute speech, save for a "levelling up" premium to recruit maths and science teachers in disadvantaged areas, and promises of a new programme of road and rail infrastructure in Labour's former stronghold in northern England.

- 'Change of direction' -

More broadly, Johnson framed a narrative that the UK's departure from the European Union presents a historic opportunity to remake the country.

"We are dealing with the biggest underlying issues of our economy and society, the problems that no government has had the guts to tackle before," he said.

"We are embarking now on the change of direction that has been long overdue in the UK economy," he added, vowing no return to the pre-Brexit model of "uncontrolled immigration".

Instead, British businesses will have to invest in their workers and technology to push the country "towards a high-wage, high-skill, high-productivity economy".

But Johnson warned it will take time to transition.

In the meantime, the government has grudgingly agreed to a limited number of short-term visas to lure truckers and poultry workers from eastern Europe.

For opposition parties and poverty campaigners, Johnson's commitment to "levelling up" unequal growth also jars with the ending of a weekly boost to benefits for the lowest-paid workers.

Johnson's attempt to draw a line between his administration and previous governments which lacked "guts" overlooks the fact that the Conservative party has been in power since 2010.

In contrast, chancellor Rishi Sunak -- seen by many observers as the heir apparent to 10 Downing Street -- is stressing continuity with the Tory tradition of fiscal rectitude.

Sunak featured prominently in a pre-speech video played to the Conservative members awaiting Johnson's speech, and he has been mobbed by fans at this week's conference in Manchester, northern England.

- Muted on climate -

The government blames the acute labour shortages afflicting the UK economy not on its hardline approach to Brexit but on the coronavirus pandemic.

But the supply crisis risks undermining themes that Johnson emphasised in his conference speech, including "Global Britain" after the EU divorce.

He touted a new defence alliance with Australia and the United States dubbed AUKUS, which has infuriated France after Canberra cancelled a lucrative contract for French submarines.

"I know that there has been a certain raucus squawkus from the anti-AUKUS caucus," Johnson joked.

"But AUKUS is simply a recognition of the reality that the world is tilting on its economic axis and our trade and relations with the Indo-Pacific region are becoming more vital than ever before."

Johnson also talked up Britain's action on climate change and the need for global coordination, ahead of convening the two-week COP26 climate summit from October 31.

The gathering in Scotland's biggest city Glasgow will be the "summit of our generation", he said, but he was light on any new detail for Britain's net-zero ambitions.

Rather, the four-day Tory gathering saw photo opportunities with e-bikes and zero-carbon housing.

Sunak said on Monday it would be "immoral" to bequeath pandemic-driven debt to future generations, but made no mention of saving those generations from a burning planet.

The omission was a "damaging sign" ahead of COP26, commented Rebecca Newsom, head of policy for Greenpeace UK.

- The B-word -

In contrast, the B-word -- Brexit -- has been a recurrent theme for Tory delegates, adamant that current problems associated with the EU split will pass.

Brexit minister David Frost admonished the "anti-transport, anti-car" lobby's "anti-growth ideologies" and "persistent miserabilism".

Home secretary Priti Patel used her own conference speech on Tuesday to promise tougher action against climate protesters who have been blockading roads around London.

Johnson mocked the demonstrators as "irresponsible crusties".

But his COP26 president, Alok Sharma, denied the party was soft-pedalling climate change with less than a month to go before he welcomes delegates from around the world to Glasgow.

More For You

Boohoo shareholders block Mike Ashley’s bid to join board
Mahmud Kamani

Boohoo shareholders block Mike Ashley’s bid to join board

SHAREHOLDERS of online fast-fashion retailer Boohoo have firmly rejected billionaire Mike Ashley’s attempt to secure a seat on its board. The decision, made at a shareholder meeting on Friday (20), follows a series of heated exchanges between Boohoo and Ashley’s Frasers Group.

A decisive 64 per cent of votes were cast against allowing Ashley and his associate, Mike Lennon, to join Boohoo’s board. Excluding Frasers Group’s 28 per cent stake in Boohoo, nearly all remaining investors voted against the proposal, reported the Financial Times.

Keep ReadingShow less
UK-retail-sales-Getty

Christmas shoppers are seen in Covent Garden on December 6, 2024 in London. (Photo: Getty Images)

Retail sales rise by 0.2 per cent in November after pre-budget decline

UK RETAIL sales increased by 0.2 per cent in November, according to official data, reflecting a modest recovery after October’s decline as concerns about the government’s budget eased. However, the growth was weaker than the 0.5 per cent increase forecast by economists polled by Reuters.

The Office for National Statistics (ONS) reported that the November rise marked the first increase since August. Over the three months to November, sales volumes grew by just 0.3 per cent, the weakest performance since the three months to June. Sales volumes had dropped by 0.7 per cent in October amid caution ahead of Chancellor Rachel Reeves’ tax and spending plan.

Keep ReadingShow less
Budget halted economic growth, Bank of England warns

Bank of England Governor Andrew Bailey reacts during a press conference at the Bank of England in London on Aug 1, 2024.

(Photo by ALBERTO PEZZALI/POOL/AFP via Getty Images)

Budget halted economic growth, Bank of England warns

THE Bank of England has cautioned that the UK economy is stagnating, following measures introduced in chancellor Rachel Reeves’s budget. Businesses are reportedly responding to tax hikes and a higher minimum wage by cutting jobs and raising prices.

Andrew Bailey, the Bank's governor, revealed that growth forecasts for the final quarter of 2024 have been downgraded to "zero." He also stressed a cautious approach to reducing interest rates, which remain at 4.75 per cent, citing economic uncertainty. “We need to ensure we meet the 2 per cent inflation target sustainably,” Bailey said.

Keep ReadingShow less
‘UK-India trade sees growth as
payments rise by 121 per cent’

India is increasingly seen as a hub for global business development, according to HSBC

‘UK-India trade sees growth as payments rise by 121 per cent’

BUSINESS activity between the UK and India flourished in 2024, with payments received by clients in Britain from India rising by 121 per cent, according to the latest data from HSBC UK.

The multinational bank highlighted the figures based on its two-way support for businesses within the India-UK corridor this week and said its data on payments and client referrals showed yearon-year growth.

Keep ReadingShow less
Bank-of-England-Getty

A general view of the Bank of England on December 19, 2024 in London. (Photo credit: Getty Images)

Bank of England maintains interest rate amid inflation rise

THE BANK OF ENGLAND (BoE) on Thursday kept its key interest rate unchanged at 4.75 per cent, opting not to follow the US Federal Reserve's recent rate cut, as inflation in the UK sees an uptick.

"We've held interest rates today following the two cuts since the summer," BoE Governor Andrew Bailey said in a statement.

Keep ReadingShow less