Two years after the Brexit vote, the UK population is as divided and as shocked as it was immediately after the results were announced, if not more so. The difference is that the negative economic consequences of the vote are in sharper focus.
As if we didn’t know already, last week we got another reminder of the economic disaster that Brexit is shaping up to be: Retail sales weakened in the UK, as price rises eat into consumers’ purchasing power.
A survey by Scottish Widows imparts some uplifting news: British millennials are optimistic about their future. Around 75% of millennial-aged Britons expect their quality of life to improve or at least remain the same in retirement, it shows.
Most millennials expect to retire around 63 years of age (Scottish Widows calls this “early” retirement, but until not long ago, retiring at 63 would have been considered pretty normal).
“This generation has expensive plans for their later years, with holidaying overseas (59%), trips to the cinema and theatre (48%), keeping up with the latest fashions and buying new clothes (28%) and eating and drinking out regularly (26%) in their sights,” the survey shows.
While it’s always good to see the young looking confidently to their future, they should take a better look at these plans and perhaps revise them down a bit, following the UK’s vote to leave the European Union. They should also perhaps learn from that vote and become more active and vocal in future political decisions.
Ahead of the Chancellor’s Budget set to be published on March 16, there is a lot of speculation that he may announce other measures to cool down the buy-to-let property market. I don’t think he will need to: the market will cool down pretty rapidly once the regulatory changes that are coming for banks are understood by buyers. Admittedly, that will take a while. This article is for those who want to stay ahead of the game.
There’s no easy way to put this: the central banks are like the naked emperor in the well-known story. And the only solution that could save us from the next recession is so politically sensitive that it will not be put into practice.
By Antonia Oprita
House prices in the UK are getting another boost from the government, just in time for the May 7 general election.