Post-Brexit world needs public input
THE UK is the Channel Islands’ benevolent big brother. Right?
That’s the traditional view of the relationship between us and the UK, through our allegiance to the Crown. But in a post-Brexit world, could the economic relationship between us and the UK undergo a sea change?
Why? Boris Johnson seems intent on setting a new course for the UK, diverging from the European Union when it comes to regulatory requirements as well as in other areas.
So what you may ask – the UK can do what it likes as a sovereign nation. But there could be fall-out for Guernsey if Mr Johnson decides to compete with us as a low-tax jurisdiction.
In the UK, structural reforms and public money to make the British economy more competitive could become a challenge – in particular for our financial services sector, the engine room of our economy.
Of course, events could get in the way of such a radical reshaping of the UK economy. Attempts to overhaul economies also take time, and longer than supporters of such projects think they will.
Guernsey also has a head-start on the UK with our successful and diversified financial services industry. Plus, there could be upsides if the City of London continues to be a global financial centre, and the British economy grows post-Brexit.
But with the UK entering into a transition period with the EU and an election year in Guernsey, now is the time for us collectively to really begin thinking about where we want to be economically in the next five, 10, 15 years.
What is the best way to cultivate innovation and support locally-based entrepreneurs in all sectors? What is the best way to ensure international financial services businesses – not necessarily headquartered here – seeing Guernsey as integral to their business rather than as just a ‘bolt-on’. What about our business relationship with the UK? How we work with the City of London while also pivoting a green offer to the world? It should all be up for discussion.
Senior politicians, business people and forward-thinking islanders are all alert to the issues and work is going on. But perhaps it’s time for a public debate as well.