Rivals agree on one thing… we did need greater clarity
TWO of the highest profile figures in the Brexit debate this weekend welcomed the Prime Minister’s plan for leaving the EU, hailing its focus on negotiation and a careful line on immigration.
Theresa May’s ‘12-point plan’ for Brexit, outlined last week, has been the big talking point among British business figures, matched only by Donald Trump’s arrival in the White House.
Sir Martin Sorrell, head of marketing group WPP and a vocal ‘remainer’, said: ‘Now there is a roadmap – whether or not you like the destination – and removing uncertainty is welcome.’
Speaking from the World Economic Forum in Davos, Sorrell added: ‘There was also some flexibility in her approach. That has given people here confidence too. It was encouraging to hear her recognise the process will be a negotiation between us and EU states. That means there will be a degree of give and take.
‘I was pleased, too, that she talked about a possible transition arrangement.’
Prominent Brexit backer Lord Wolfson, boss of Next, welcomed the ‘common sense’ approach. He said: ‘The tone was pro-free trade and not too negative on immigration. Most people agree some control over immigration makes sense. But people who work hard, obey our laws and pay taxes make an enormous contribution to our economy. They’ve been an engine of UK growth for the last ten years. The Prime Minister set out a clear vision of what the UK will offer Europe. Why would anyone not want to engage with Britain on these terms?’
But both also highlighted challenges ahead. Wolfson has already said the falling pound will push up prices in his shops this year. He added: ‘Devaluation will squeeze real earnings. But I don’t think the currency will devalue again next year. On the upside, the pound was overvalued and this will make the UK more competitive.’
Sorrell, whose firm owns some of the best known US advertising groups, such as Ogilvy & Mather, also said Donald Trump’s Presidency would lead to stronger US growth in the near future.
He said: ‘We’ll see two or three years better growth in the US when he starts spending on infrastructure, and if capital returns from outside the US. But the return of inflation will slow everything down again and he’ll have to deal with big issues like automation, which will cut jobs.
‘But frankly everyone in Davos is shell-shocked: this time last year they expected Hillary Clinton to be president and Britain to have voted to remain.
‘So a lot of people are feeling very reluctant to forecast anything at all.’