In 2017 the former Greek Finance Minister Yannis Varoufakis aptly described the Brexit negotiations as a ‘Dog’s Brexit’ and it would appear little has changed. ‘Deal or No Deal’, Brexit will have effects on the British food and drink manufacturers, writes Derek Watson (Sunderland).
The former British Prime Minister David Cameron’s bravado in rolling the Brexit referendum dice failed to read public opinion, when 52% of the public voted to leave forcing his hand to promptly foreclose on his political legacy. Teresa May a staunch remainder, subsequently stepped into number 10 and grasped the Brexit baton. The Prime Minister’s decision to promptly activate a withdrawal in signing article 50 of the Lisbon treaty with no agreement on an endgame plan, clearly contributed to economic instability. In response, the pound suffered its worst day dropping to $1.3236, a fall of more than 10%. Both the FTSE 100 index and the more UK-focused FTSE 250 fell more than 8%. The drop in British sterling forced the annual inflation rate of 0.5% up to 2.9%. This, in turn, slowed the wage growth into a decline that resulted in a contraction of consumer spending and categorised the UK as the slowest growing economy in the G7.