by Andrew Sentance
The political shock waves from the EU referendum seem to be subsiding now, with the formation of a new government under Theresa May. As was the case after the inconclusive 2010 General Election, the British political system has moved quickly to form a new government and forge a new direction.
Theresa May is clear that “Brexit means Brexit”. The UK is leaving the EU, even though the timescale is uncertain and our future economic relationship with other European countries is unclear. Planning will now start in earnest for negotiations with other EU countries – probably starting early next year – which could take up to two years to complete.
Most forecasters expect the uncertainty about our economic relationship with Europe to affect business investment and consumer confidence – and the early indications are consistent with this.