We Must Re-Create The Brexit Movement

The Brexit Movement, prematurely wound down after the EU Referendum, needs re-creating to continue making the case for it, so as to keep pressure on the Government to deliver it.

Note: this is the long (and updated) version of an article first published at The Conservative Woman on Friday 17th November 2017.

Like many ConWom readers, I suspect, I spent the early dawn hours of Friday 24 June 2016 in a state of ecstatic semi-euphoria that the British people had ignored the pro-EU hectoring of the massed ranks of the New Establishment and their globalist backers, and had voted to leave the EU. It didn’t last very long.

Such was the furious reaction of the Remainer-Elites and their compliant media courtiers to their unexpected defeat that, before the day was out, I’d become convinced that while we had won the Referendum battle, we certainly hadn’t yet won the war, and that the celebrations of some, on the assumption that all that was needed to achieve Brexit had been done, were hubristic and perilously premature.

I even tweeted as much, as this selection from my Twitter timeline between early that Friday morning and late that evening shows (with apologies for the profanities…)

But sadly, this is precisely what happened after the Referendum. The Vote Leave campaign wound down: its principal Conservative politicians dived headlong into the internecine strife within their party from which its Remainers emerged predominant, while its successful CEO, Matthew Elliott, decamped to the Legatum Institute.

On the Leave-EU side of the Brexit movement, an insufferably bombastic and complacent Nigel Farage resigned as leader of UKIP to forge a new career in the media as the man who won the Brexit that hasn’t occurred yet. UKIP meanwhile has collapsed into virtual irrelevance after the two most credible replacements were seen off by the residual Farageistes, is now led by a non-entity, and is near-invisible. 

A couple of pro-Brexit campaign groups persist, but active mainly on social-media only. One of them, connected to the Leave-EU movement, has a website where it’s comparatively rare that the space taken up by the text of a blogpost actually exceeds the space taken up by images accompanying it. 

In effect, the loose coalition that delivered that historic vote by 17.4 million people to retrieve their sovereign nation-state popular democracy from supranational unaccountable-elite technocracy, and the communications infrastructure that made it possible, has all but dissolved.

It’s this article’s contention that this has been a catastrophic error: that developments,  not only since the Referendum generally but specificially more recently, are placing Brexit in ever-greater jeopardy: and that the Brexit movement needs to be re-constituted and go back on to a war footing, to fight for what the British people voted for, and even contest if need be the second referendum which I personally believe to be the Unreconciled Remainers’ end-objective.

Although the Leave coalition subsided, the Remain campaign never ceased. Unlike Vote Leave and Leave-EU, the pro-Remain Open Britain campaign has never wound down, and continues to make the anti-Brexit case.

Readers will recall the ugly post-Referendum orgy of anger and hatred directed by ‘liberal’ Remainers and their cheerleaders at Leave voters, the constant attempts by the academic and judicial elite to delegitimise the Referendum result, and the sometimes near-hysterical anti-democratic polemic of, to name only two egregious but typical examples, the philosopher A C Grayling and Labour MP David Lammy, so I need not reiterate them.

It intensified once again during the Gina Miller litigation designed to facilitate a majority pro-Remain House of Commons vetoing the Government’s Article 50 notification. But it lessened somewhat after Parliament voted by 494 votes to 122 to authorise the triggering of Article 50 by 31st March, and matters reached a sort of uneasy equilibrium.

But then came May’s ill-advised, mismanaged General Election. When she and the Conservatives were returned drastically weakened, the Continuity-Remain movement was re-invigorated and its political, civil service, media, academic and judicial channels have visibly stepped up their campaigning by several levels of magnitude. They’re making the running: they look increasingly confident that Brexit really can be stopped and the Referendum reversed, and a majority-Remain Government seems at best half-hearted in response.

Now the fight is intensifying even more with the tortuous passage through Parliament of the EU Withdrawal Bill. The parties of the pro-EU Left have made clear their intention to conduct a guerilla war against it, voting against even the clause setting out its overall purpose, aided by 15 or more Unreconciled-Remainer rebels on the Tory back benches, some with considerably less honourable motivations than others.

In passing, let’s dismiss the disingenuous platitudes so many of these utter about wishing to do no more than “improve” the Bill. In many cases, it’s self-serving cant. They want to keep us in the Single Market and Customs Union, and under the jurisdiction of the European Court of Justice,  not out of genuine concern for our post-Brexit trade prospects or the position of UK-resident EU nationals, but to engineer either a Brexit-in-name-only, or one which is so close to EU membership that re-joining would seem like a logical step.

Many remain unreconstructed supporters of the EU Project and Britain’s submersion in it. It’s long been clear that, for them, the prime attraction of EU membership lies in is its very anti-democracy: it enables them to put as much policy-making and as many decisions as possible beyond the reach of what they see as the capricious domestic democratic process and an electorate whose views they by-and-large do not share and for whom they harbour a visceral contempt.

If some of the amendments being proposed already seem very technical and legalistic, be prepared: worse is yet to come. In this very detailed long-read published on 12th November at Brexit Central, Professor David Campbell of Lancaster University sets out how the legislative process of Brexit could become almost impenetrably bogged down in the morass of a quasi-constitutional conflict over the supremacy of the Judiciary, or Parliament.

It doesn’t look impossible that it could establish the supremacy of the Judiciary over that of Parliament. Just think what that would do to the prospects of Brexit happening at all. That partly explains, in my view why such an ardent anti-Brexiteer as Labour’s Keir Starmer is so keen to maintain the jurisdiction in post-Brexit Britain of the European Court of Justice.

Professor Campbell concludes that we may need an Assertion Of Parliamentary Sovereignty Act to make Brexit tamper-proof from judicial-activist usurpation of the powers of Parliament to implement the express instruction of the electorate.

If the EU Withdrawal Bill is set to have a rocky passage through Parliament, imagine how difficult it would be for a minority Government to push legislation, whose effect would be to prevent the pro-Remain Judiciary from blocking Brexit on constitutional grounds, through a marginally pro-Remain Commons and a majority pro-Remain despite unelected Lords.

Another potential complication emerged on 14th November, with a European Court of Justice ruling that EU citizens who become British do not lose the right to bring a non-EU spouse from a non-EU country to live with them in the UK. The continuing post-Brexit application of ECJ human-rights rulings is figuring strongly in debate on the EU Withdrawal Bill, so this is a further area where continued pro-Brexit advocacy is lacking.

May herself arguably opened a new front in the anti-Brexit campaign with her speech to the Lord Mayor’s Banquet on Monday 13th November. Yes, it is possible to interpret her remarks on Russian interference in Western elections as a desperate ploy to divert attention from her domestic travails: but it’s also possible to interpret it as a fresh attempt to de-legitimise by association the entire Brexit vote, especially the evening before the EU Withdrawal Bill was re-introduced into Parliament, with every prospect of the Unreconciled Remainers on her own back benches determined to vote it down on any pretext?

The signs are ominous. The EU is refusing to move on to talks about a post-Brexit trade relationship unless its exorbitant financial demands are agreed. Each UK concession on these is banked, not reciprocated, and met with merely a request for a larger sum. On 20th November, it even had the temerity to demand in effect an EU veto on UK domestic tax, environmental and business-regulatory policy after Britain has left the EU.    

Its intransigence is being encouraged by a UK media overwhelmingly hostile to Brexit and resolved to paint it in the worst possible light. Sir Humphrey, for whom Britain’s EU membership has been axiomatic for 40 years and thinks Brexit a monumental folly of crude populism-appeasement, is dragging his feet.

The Government is being forced by its weakness and wafer-thin, DUP-dependent, majority into unwanted concessions. It’s conceding votes in Parliament on aspects of Brexit which, with the clear instruction delivered by the Referendum result, should no longer be in play at all. In these circumstances, that it might, to win a crucial vote, concede a second Referendum, either on the terms of our exit, or even on the decision itself to leave, can’t in my view be ruled out.

If that comes about, the Remainers will have achieved what has been their prime objective – and also the EU’s, for it has an unsavoury record of ignoring plebiscites with unwelcome outcomes and requiring electorates to vote again and again until they come up with the “right” answer.

And then what? Unlike Vote Leave and Leave-EU, the pro-Remain Open Britain campaign has never wound down, and continues to make the anti-Brexit case. Continuity-Remain could gear-up for a second EU Referendum comparatively quickly. The money would come flooding in.

It’s victory, though, would be far from a foregone conclusion. Since June 2016, the electorate has seen the EU moving faster towards ever-greater integration and centralisation in ways the Remainers denied were even being contemplated. It’s seen how so many of the scaremongering predictions of Project Fear failed to materialise. A second Referendum could be won with another Leave vote.

But not without a campaign organisation. Even without a second Referendum, Brexit feels in enough danger to justify the reconstitution of the Leave coalition, if only to continue to make the case it made so effectively in the first half of 2016, and hold the Government’s feet to the fire. The Brexit movement needs to be re-created.

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The Tories Don’t Deserve To Win – Labour Deserves To Lose

Neither the Tories, with their statist, triangulating Manifesto, nor Labour, with its destructive socialist vision, deserve victory in this General Election

In a few hours, this General Election will be all over bar the results and their consequences.  Yet the usual anticipation of Election Night is muted by an almost palpable sense of relief at the approaching end of a campaign offering such a lacklustre, uninspiring choice.

For Theresa May and the Tories  it was supposed to be the Brexit Election: where, wanting both a bigger Parliamentary majority and her own popular mandate to implement it, she would offer a vision of a Britain mitigating the risks but also exploiting the advantages from recovering political and economic sovereignty.

Both, paradoxically, dictate some loosening of State and regulatory shackles on the economy, a facilitation of innovation and entrepreneurship: especially as the economy inevitably goes through a period of uncertainty and flux as powers are repatriated and trading relationships either reset or forged from new. But that isn’t what we’ve got.

The first intimations were reasonably heartening, But then came the Manifesto.

2017 Manifesto on Core Beliefs

Disparaging talk of “untrammeled free markets”, belief in “the good that government can do”, and abhorrence of “inequality”. The context leaves little room for doubt that the offer to voters is one of an interventionist State, concerned not so much with opportunities, but with outcomes.  

Further on, we are promised an Industrial Policy, a National Productivity Investment Fund, worker representation on boards, and a commitment to continue spending 0.7% of GDP on virtue-signalling foreign aid.

Finally, we get to this Greenery-gullible horror. Yet it accompanies a pledge to give British voters “the lowest energy costs in Europe”, notwithstanding that those two aims are mutually incompatible.

Worse still, it’s to be achieved, not by slashing Green taxes and encouraging more competition among energy providers via supply-side measures, but by capping prices: the same policy that, as recently as 2015, the Tories rightly damned as economically-illiterate when included in Labour’s election manifesto by Green-Left Red Ed Miliband.

So, in aggregate, a largely social-democratic policy programme, advocating a version of active-state Rhenish corporatism that would not look out of place in the manifesto of any milquetoast European Christian-Democratic party.

One can speculate endlessly on the reasons why. Possibly they lie in the fact that May is an instinctive paternalist (should that be “maternalist”, I wonder?) technocrat who’s unconvinced of, as Martin Durkin puts it, the potential of free markets to liberate and enrich.

Perhaps, because Labour has gone so far Left, she was persuaded that a Clinton-Blair style triangulation, with the Tories parking their tanks on “moderate” Labour’s lawn, would work electorally. Maybe she was afraid of frightening off the 2 or 3 million Labour voters who voted for Brexit and want to see it happen, and also the One-Nation tendency in her own party still looking for any excuse to derail Brexit. Who knows?

Then there’s been the campaign itself. May  – and it has been almost exclusively May, from battle-bus, through campaign literature, to media, and all points in between – has come across as by turns either robotically evasive, or uncomfortable and unconvincing when pressed on detail.

The forced U-turn on Social Care brought her campaigning deficiencies into sharp focus, but combine that with her natural somewhat leaden, flat-footed demeanour, plus a requirement to face an inquisitorial public & press far more often than she’s ever had to do before, and the result has been, not failure, but certainly sub-par performance.

Both she and her Party, have emerged from the campaign diminished, and not just in opinion-poll ratings, either. “Strong and Stable” has become something of a stick to beat her with. The whole thing has been rather insipid, disappointing, and very far from enthusing.

Consideration of Corbynite-Labour’s hard-Left manifesto need not take us as long. “Insipid” isn’t a description that could remotely be applied to it: “terrifying” or “economically-catastrophic” hardly begins to cover it, such is the red-in-tooth-and-claw programme that unrepentant socialist Jeremy Corbyn has in mind for the country.

The appalling consequences of a Corbyn-led Labour government have comprehensively dissected, with this by Andrew Lilico being merely one of the latest.   

As Lilico points out, fiscally and economically Labour would impose on Britain the highest level of taxation since World War II: the nationalisation, almost certainly without compensation, of the most important industries: a return to widespread (and excess) unionisation: deliberately punitive taxes on financial services designed specifically to deter private capital: and the effective collectivisation of private business property through imposing public interest duties inimical to both private property rights and commercial interest.

Moving from the general to the particular, just one example can suffice to show hard-Left Corbynism’s economic wrong-headedness. Despite favouring continued uncontrolled mass immigration, Labour proposes to deal with the housing shortage by a price-cap on new houses.  

All that that is likely to achieve is a shortage of new houses. If Labour really wanted to boost the supply of low-cost new houses, it would pledge to ease planning restrictions, not threaten to impose State price and even purchaser – priority to State employees, naturally – controls on builders. 

Non-economically, a Corbyn-led Labour government would see restrictions on the police, the reduction of the Army to a notional force only, and the withdrawal of Britain from its role in international security.

And this before even considering the implications of Corbyn’s 30+-year record of not only sympathy but vocal backing for all manner of anti-British, anti-Western groups, including those engaged in active terrorism, even on British soil.

And thus we come to the end of a singularly uninspiring campaign on what should have been the most important election in Britain for decades. The great issue for which it was ostensibly called to reinforce has been barely discussed beyond trite soundbites and banal generalities.

Hard-Left Labour certainly deserves to lose this election, and lose it heavily: but the Conservatives, on their manifesto and especially on their stuttering and lacklustre campaign, really don’t deserve to win it, either.

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Tax-Havens: Also A Force For Good

Far from being solely amoral, piratical facilitators of crime, kleptocracy and evasion, so-called tax-havens in fact also play a valuable role in promoting economic efficiency and curbing State-predation  

Tax havens Panama CitySo-called tax-havens have a bad reputation. In public and political minds, influenced almost wholly by the clamour of either wilfully-ignorant or Leftist-populist media and political hacks, they’re all, without exception, places solely where unsavoury associates of autocrats and plutocrats soak up the sun in between furtively stashing suitcase-loads of ill-gotten gains in anonymous numbered accounts.

As we’ve recently seen all too starkly. Because one of the main features to become glaringly obvious in the Panama Papers leaks, and in the domestic political furore in the UK which has followed it, is a self-evidently widespread inability (or possibly unwillingness) of the politico-media class and commentariat to differentiate the few truly-nefarious tax-havens from the more numerous well-run and properly-regulated offshore financial centres (OFCs) – they are decidedly not the same thing: or to distinguish illegal loot-hiding, money-laundering and tax-evasion, by corrupt despots, criminals and others, from the entirely legal use of OFCs in perfectly legitimate investment and tax-avoidance.

As so often, reality is both more complex, and more nuanced, than media-driven populist perception.

For a start, on the basic issue of definitions. The OECD lists four criteria which a territory or jurisdiction must fulfil in order to qualify as a tax-haven, as opposed to an OFC:

  1. Imposing no, or only nominal, taxes, even domestically
  2. Lack of transparency
  3. Laws and practices that discourage or even prevent automatic exchange of [tax-purposes] information with other governments on the beneficiaries of its tax regime
  4. No stipulation that the activity domiciled in its jurisdiction be substantive

On these criteria, there are relatively few true tax-havens: even the OECD lists only four, and, on its Automatic Exchange Of Information criteria, a mere two.

Tax havens Waterfront Grand CaymanMoreover, and more importantly, the vast majority of the Crown Dependency and British Overseas Territory OFCs, which Labour leader Jeremy Corbyn incorrectly labelled as tax-havens and proposed arbitrarily supplanting their democratically-elected governments to place them under direct rule from Westminster, don’t even fall into the “tax-havens” category at all.

So when no-one seriously opposes measures to prevent, detect and punish both those who undertake criminal tax-evasion, money-laundering and loot-concealment and the few residual disreputable genuine tax-havens which do facilitate them, the real objections by governments, commentators and so-called social-justice campaigners to the legitimate use of OFCs or any low-tax jurisdictions must originate from elsewhere.

Those objections arise from two principal, and unsurprising, sources. Firstly, the misunderstanding, derived from popular fallacies, of the economic good that low-tax jurisdictions promote: and secondly, the competitive threat they represent to the otherwise-unconstrained power of high-taxing, high-spending states to extract taxes from their economies and populations almost ad infinitum.

To address one of the most popular fallacies – that money deposited in OFCs or low-tax jurisdictions is somehow irretrievably “lost” to the global economy. This is just arrant nonsense.

First, it wrongly assumes there is a fixed amount of global capital whose geographical distribution creates a zero-sum game, where any partial deployment of it to Location A must automatically reduce that available in Locations B-Z. In fact global capital is both dynamic, and fungible, and continues being created in those parts of the so-called “losing” mainstream onshore economies that aren’t sensitive to geographically-differing tax rates.

Tax Havens BermudaSecond, it assumes that all capital deployed to low-tax jurisdictions stays there, static. This isn’t necessarily the case – small islands generally don’t have much potential for domestic infrastructure investment or large-scale economic activity – and it’s especially not the case in a period of low or even negative real interest rates. Although the total of assets located in an OFC may change only slowly, that ignores the stock-vs-flow issue, where many of its components parts may be being directed into other forms of investment in other locations, and subsequently repatriated, on a regular basis.

Inasmuch, too, as the location of capital and/or assets in the low-tax jurisdiction encourages their investment to generate a return not achievable if based in a higher-tax jurisdiction, the OFC is actually promoting more FDI in the investment location. In this way, the availability of low-tax OFCs makes them conducive to an increase in overall international investment and in global capital, not its depletion. They are not “poaching more than their fair share” of international capital, but acting as a conduit for its more productive and optimal investment back into mainstream onshore economies.

Third, international systems of taxation don’t always cope well with avoiding the dangers of double-taxation. If you’re an investor (and remember, you may well be, even via an ISA or your employer’s pension scheme) in a fund set up in a country that levies a withholding tax on redemption payouts, but those redemption payouts aren’t taxable domestically in your own country, then recovering the tax that’s been wrongly withheld from you is going to be difficult. By providing a tax-neutral environment, low-tax OFCs perform a valuable role in making sure that your investment, even an indirect one, isn’t taxed twice. That benefits you.

Tax havens Mossack Fonseca PanamaFourth, the fallacy assumes the “losing” country is automatically forced to raise its own domestic tax-rates to replace the tax-revenue “lost” when assets are relocated to a low-tax OFC. Countries, however, don’t operate in isolation from their international environment: lower tax-rates in other jurisdictions act as a restraint on mainstream onshore governments’ own tax-rate policies. Both firms and workers in those economies therefore benefit in purely micro-economic terms from overseas low-tax OFCs, in the form of lower taxes domestically than might be levied otherwise.

Next, low-tax OFCs also fulfil a vital function in providing a safe harbour for wealth legitimately created and held, against the tendency of inherently corrupt, dictatorial  & kleptocratic regimes to predate on it.

Depending on the definitions chosen, there are approximately 170-190 countries in the world: but only a minority are full democracies where the government is subject to the rule of law and scrutiny by a free Press. The Economist Intelligence Unit’s Democracy Index 2014 in fact lists a mere 24 as full democracies and a further 52 as flawed, out of a total of the 167 rated, leaving over 90 regimes described as either hybrid or (the majority) authoritarian. Perhaps not surprisingly, there’s a correlation between the latter categories and the Transparency International Corruptions Index 2015’s assessment of the most corrupt countries.

Most & Least Corrupt Countries 2014

These are countries where even if, against all the odds, an honest entrepreneur, investor or businessman manages legitimately to amass capital and assets, they are liable to be arbitrarily seized at any time by the regime, either unashamedly or via a quasi-criminal or complicit judiciary, and confiscated. By existing at all, low-tax OFCs furnish a safe refuge for such assets. In this role, rather than encouraging or facilitating corruption, they are in fact operating so as to thwart it.

Benefits of Tax CompetitionLastly, low-tax OFCs form a valuable macro-economic brake on the overall ability of excess-spending, excess-taxing governments to otherwise levy punitively-high taxes without restraint. In the absence of the tax-rate competition provided by lower-taxing jurisdictions, it’s unlikely that governments, viscerally-disinclined on both ideological and electoral grounds to curtail State intervention and largesse, would not take the opportunity to impose economically-damaging higher taxes generally. 

It’s primarily for this reason that the member-states of supranational political unions like the EU are so enthused by the prospect of cross-border harmonisation of taxes, or centralised democracy-proof pan-European fiscal control, as the corollary to curbing the legitimate activities of low-tax offshore financial centres. 

The vocal but unthinking critics of low-tax OFCs, in their haste to condemn what they see as the obvious, miss a point – that they are also a force for good. The existence, and legitimate activities, of low-tax OFCs both promote greater economic, capital-allocation and investment efficiency, and indirectly benefit employers, employees and consumers in the mainstream onshore economies by protecting them from excess State predation.     

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