Education & politics
MY THOUGHTS ON THE OUTCOME OF ANDREW DISMORE LABOUR LONDON ASSEMBLY MEMBER FOR BARNET AND CAMDEN
F
irst, a few words about the second referendum call, supported by millions of outraged people. I understand their frustrations, but I think it is the wrong thing at the wrong time. In the unlikely event that there were to be a rerun, then the result could be worse. We have to respect the outcome. The opportunity to examine the detailed implications will come soon. A General Election in the Autumn must follow, after a new Prime Minister has been appointed by the Conservative Party. I hope that our European partners will accept that the formal process (‘Article 50’) should not commence till then, and after an election has given a clear mandate on how to address the consequences of the vote. The referendum has exposed deep fractures in our society: geographic, intergenerational, class, ethnicity and many others, divisions exploited by demagogues.. Many saw the referendum as the chance to express their alienation and dissatisfaction. The cause has its roots in the fallout from austerity and its impact on public services,
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the Suburb Circular • JULY 2016
for which immigration became a convenient scapegoat. The consequences we are now seeing include an increase in hate crime. By the Autumn, the early economic consequences will become increasingly clear : It is not just a case of more expensive foreign travel unless the pound recovers (which seems unlikely), but prices will rise as the impact of higher fuel prices affect not just motorists, but feed through into transportation costs for all other goods; and the cost of imports of all types will rise. The consequences for London’s financial services’ contribution to the economy cannot be underestimated. We have to ensure that the country does not leave the single market, for which the referendum did not give a mandate. This is why Sadiq Khan is right to demand that London has a seat at the EU exit negotiating table, to do the best we can to minimise the impact on our capital’s economy and by extension, the nation’s. Although most of the rest of the country voted the other way to London, they are heavily dependent on the resources
generated by and in London. Overall, London provides a net subsidy (money raised in London but spent elsewhere) of 20.3 per cent of GDP, so one pound in every five earned by Londoners is used to fund the rest of the country. If London were a country, our economy would place us 11th largest among EU countries. The result makes irresistible the case for much more devolution to London so that we can address the consequences, given that the London economy is so different from most of the rest of the country. London Government also needs to find common cause with the other ‘remain voting’ big cities, including Manchester, Liverpool, Leeds and Newcastle, and work, so far as it is London’s interests to do so, with Scotland too.
IF LONDON WERE A COUNTRY, OUR ECONOMY WOULD PLACE US 11TH LARGEST AMONG EU COUNTRIES.