By George Prior
Prime Minister Boris Johnson is inflicting unnecessary economic damage on an already vulnerable UK economy, warns the CEO of the world’s largest independent financial advisory organization.
The warning from Nigel Green, chief executive and founder of deVere Group, comes as it is revealed that the government is to ask the Queen to suspend Parliament when lawmakers return to work next week. This means that they are unlikely to have time to stop the Prime Minister taking the UK out of the EU without a deal on October 31.
Mr Green comments: “It could be argued that Boris Johnson’s decision to ask the Queen to suspend parliament, and therefore to prevent democratically elected representatives of the people doing their job, is deeply unconstitutional and has the hallmarks of a tin-pot dictator.
“However, it could also be argued that it is Mr Johnson fulfilling, one way or another, the will of the British people who voted to leave the EU in the 2016 referendum.
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“It is likely to be a tactic to spook negotiators into making concessions to the Withdrawal Agreement. Whether it will work remains to be seen. It will almost certainly be challenged in the courts.”
He continues: “What we do know for sure though is that this step will inflict further unnecessary economic damage on an already extremely vulnerable UK economy.
“Depressingly, a recession is looming for Britain and Johnson’s highly controversial tactics seriously increase the uncertainty which will further drag on investment and trade.
“In addition, it will further batter the beleaguered pound, which reduces people’s purchasing power. Weaker sterling means imports are more expensive, with rising prices typically being passed on to consumers.”
Mr Green goes on to add: “The situation in the UK is deteriorating. As such individuals and businesses will, inevitably and quite sensibly, be looking to grow and safeguard their wealth by moving assets out of the UK through various established international financial solutions.
“Brexit has plunged Britain into an existential crisis that will last for generations.
“It has also already cost billions upon billions of pounds. Indeed, it has cost the UK economy a staggering £66bn in just under three years, according to S&P Global Ratings.
“But perhaps even worse is the haemorrhaging of opportunity and confidence in the UK that will continue far beyond the Halloween deadline.”
The deVere CEO concludes: “Boris Johnson’s decision to suspend parliament will have far-reaching economic effects, many of which will not be known for years to come.
“Domestic and international investors in UK assets need to watch the situation carefully and ensure that their portfolios are best-positioned to deal with the growing uncertainties.”
deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.