After months of speculation, press articles and speeches Theresa May has confirmed that she will reveal the Governments plans for Brexit in a speech to take place on Tuesday at Lancaster House, London.
The audience will comprise top level diplomats, ambassadors, high commissioners and the governments EU negotiating team. It is a move that will appease hard line Euroskeptics and remainers alike.
Widespread reports suggest that the government will pursue a so called ‘Hard’ Brexit, completely severing all ties with the European Union, but what does that mean?
The crux of the referendum campaign, immigration and free movement will form a cornerstone of the governments strategy and its negotiating position. While looking to impose restrictions on who can enter the UK, the government has to counterbalance the needs of those UK nationals abroad and to ensure that their rights are protected.
It is a position that will require a great deal of negotiation and compromise on both sides.
Restrictions imposed must allow for the necessary flow of foreign workers which are an increasingly vital part of the UK economy and by virtue essential to economic success.
You can expect a tough line from the government on this key issue, with the government likely to outline a changed immigration system which will take effect once the Article 50 negotiations are concluded.
Access to the Single Market
A market of over 500 million consumers, the European Union forms the largest economic market for the UK and our largest trading partner. However, it is a market that comes with certain constraints in both access and usage.
Constraint number one: All workers within the European Economic Area must be allowed to move freely between member states, with no one state imposing restrictions on movement of any kind.
Obviously this falls under the domain of the aforementioned immigration issue and with the government pursuing a harder line on immigration, this will form the crux of the decision on whether the UK chooses to remain within the single market. It is possible that a deal could be reached which would allow the UK to impose legitimate restrictions on immigration whilst retaining access to the single market, but such a deal does not fall into the Hard Brexit line that the government is keen to pursue.
Constraint number two: No member state may enter into trade agreement or compact independently of the European Union. All trade deals must be made with the agreement of all 28 states.
Despite the obvious advantages of allowing individual member states to sign trade agreements with other nations in the world, the EU has pursued a unified trade policy and as a consequence has been slowed down in its deal making process. As we have seen from the last few months, the number of nations wanting to sign individual trade deals with the UK is increasing at a substantive rate.
With a greater need to preserve increasingly fragile economic markets across Europe, there is a lot of wiggle room for the UK to achieve its goal of economic independence from the EU but retaining access to a necessary partner.
We live in a parliamentary democracy and openness is essential to the political process in the UK. However, the Brexit negotiations represent a unique occasion in British politics, where openness is ultimately counterproductive. Think of it as a game of Poker, if you go into the game with your cards face up then your opponent will know what you hold and will be able to beat you far quicker than if you held them close to your chest.
The same is true of Brexit, openness leads to the EU knowing what issues are vital to the future of the UK and gives them an unfair advantage in the negotiating process. We do not have access to the EU’s negotiating position and they are unlikely to give a full account of it before article 50 is triggered.
That being said, if the current supreme court case is anything to go by parliamentary consent and access will be a vital component of the UK’s negotiating position and essential to preserving the role of parliamentary democracy. A negotiation without the consent or input of Parliament would invalidate the whole idea of the parliamentary system.
It is therefore likely that the Prime Minister will use Tuesday’s speech to unveil how the UK’s negotiating position will be debated in parliament and what role it will play in determining the elements of the negotiation.
With the financial markets a volatile place since the Brexit vote last June, Theresa May will be keen to steady the ship and to outline a viable plan for long term economic success post Brexit.
As with anything, it’s easier to say than to make happen and the final economic strategy of the UK post brexit will depend on how well the EU negotiations go. A key element of any plan is to keep existing businesses here and to encourage new businesses to make their home in the UK.
Keeping the UK an attractive, financially viable prospect is essential and we can expect the government to outline measures to do so, such as the reduction of corporation tax and the relaxation of certain restrictive trade laws.
Financial markets thrive on certainty, confidence and stability. They fail in conditions of instability and uncertainty. Although the FTSE 100 has never been as high as it has in years, the value of Sterling has decreased with the uncertainty of post-brexit Britain.
A clearer strategy should remedy this decrease in value and encourage business to plan for the future in the UK.
A government defined?
Theresa May’s speech on Tuesday will set the stage for the next five years of politics in the UK and will define her tenure as Prime Minister. Shaping the debate will show whether she can handle the task of taking the UK out of Europe or whether another should take her place.
With Labour on the skids, the Liberal Democrats a party in serious decline the opportunity to create a Conservative Brexit Britain is clear. Should she fail to deliver Brexit in the right way, it is highly likely that voters will turn to other political parties at the general election in 2020.
I for one am looking forward to hearing what she has to say.