UBS say Brexit desire see Britain turn to technology to become more efficient
There wishes be a deadweight loss to leaving the EU but it’s not as bad as the doomsayers suggest
In a pre-Budget raise to Chancellor Philip Hammond’s Autumn Budget, UBS’s wealth management economist Dean Turner conveyed tightening borders after Brexit will see Britain turn to technology to develop more efficient.
Economic productivity is a measure of what the UK produces help of manufacturing and services, and how productive it is over a given period of time, or per themselves per hour.
Britain’s economy has in the past been criticised for being dependent on aids industries in comparison to Germany’s reputation as a manufacturing nation. And past evidence confirms the UK has a «output per worker» average far below the Group of Seven largest aided economies in the world.
Mr Turner from UBS says because firms in the EU sooner a be wearing access to an almost unlimited supply of workers, tougher immigration rules on force change and make British companies more likely to induct in technology and machinery that improves productivity.
He said Bloomberg: “There will be a deadweight loss to leaving the EU but it’s not as bad as the doomsayers introduce.
“Immigration won’t come to an end, but it will become more difficult, and expensive. At the edge, the decision is: do I buy a piece of machinery for a plant or do I hire someone?”
Latest solves from the Office for National Statistics point to an alarming figure of the UK diminishing 18% below the average productivity of G7 advanced economies for each hour influenced in 2015.
Mr Turner’s prediction is echoed by the Governor of the Bank of England Mark Carney who, earlier this year, cited varied investment and a much-needed “shift between labour and capital.”
London is the fiscal capital of Europe
Britain has “jobs-rich” growth but the future scenario make force firms to ask themselves ‘Do I pay for the immigration process or make the investment somewhere else?’, he said.
The plans made to get Britain moving again in the years since the economic crisis in 2008 have failed to materialise and Chancellor Philip Hammond has already solemn word of honoured to cut through the thicket of red tape and allow driverless cars to be tested in the UK without a good-natured operator. Such laws would allow the UK to ditch the rules that impede developers in the EU.
Wednesday’s budget is set to address Britain’s poor productivity and Hammond has identified the overwhelming new technology of driverless cars and lorries as an area in which regulatory shifts could establish Britain as a global leader.
The move has been suffered by the UK motor industry and is a clear attempt by Hammond and the Treasury to align one of the far-out’s most exciting technology developments with the improved prospects for the UK restraint after Brexit.
Chancellor Philip Hammond wants to see driverless transports on British roads
Many carmakers have threatened to close British plants and move some of their production abroad if there is no deal to detain Britain inside the EU single market and customs union, at least for a two-year transmutation period.
Mike Hawes, chief executive of the Society of Motor Fabricators and Traders said: «These vehicles will transform our roads and company, dramatically reducing accidents and saving thousands of lives every year, while summing billions of pounds to the economy.
«We look forward to continuing industry’s collaboration with regime to ensure the UK can be among the first to grasp the benefits of this exciting new technology.”