From falling immigration to a reshaping of the political landscape, the country is barely out the door, but Brexit is having a staggering impact.
2. The pound
In the year following last June’s vote to leave the European Union, newly released ONS figures reveal that net migration has fallen by a staggering amount, as reported by the BBC. In the 12 months leading up to the EU vote, net migration stood at 336,000, but in the 12 months after the referendum, the equivalent figure was 230,000.
There are still more people coming into the UK than leaving each year, but the large drop can most likely be attributed to the UK’s decision to leave the European Union. Uncertainty over the final deal, especially with regards to migration, is evidently having a massive effect.
3. A new prime minister
On 23rd June 2016, with reports that the UK could have voted to stay in the EU, the value of the pound rose significantly, but once results started coming in, the pound's value fell substantially. Since the vote to leave, the value of the UK’s currency has fluctuated, but it is still much lower than it was before the vote to leave, according to data compiled by Trading Economics.
4. A return to the two-party system
With Brexit, came the inevitable resignation of David Cameron. After gambling with the country’s EU membership to please his backbenchers and see off a threat from UKIP, Cameron’s miscalculation cost him his political career. His resignation meant the end of the Cameron era, the exit of George Osborne, and in a substantial shift in direction from the Conservative party.
Enter Theresa May.
5. Increased inflation
The collapse of the Liberal Democrats in 2015 and the decimation of UKIP two years later as a result of the Brexit vote transformed the political landscape in Britain. Both the Conservatives and Labour progressed significantly in June’s election, returning the country to a system with two dominant parties.
It has led to Labour having its best short at forming a government in seven years.@@TAG3@@
According to the BBC’s Economics Editor Kamal Ahmed, “It would be ridiculous to say that Brexit is not affecting the UK's course on inflation.” However, he points out that other factors are at play and it’s a more complex picture than saying that is the only causal link. Before the vote to leave the EU, inflation was very low (around 0% for CPI), but it did increase after the vote, eventually hitting the Bank of England’s 2% target before exceeding it later on.
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