London Daily

Focus on the big picture.
Tuesday, Jul 07, 2026

Brexit Britain adopts the Microsoft model

Brexit Britain adopts the Microsoft model

After leaving the EU, the country is about to have another go at defining its global role
How does a nation with an outsized ego adjust to life as a midsized power? For the UK, the answer has always been, with difficulty. But, post Brexit, the country is about to have another go at defining its global role.

Leaving the EU is a hit to its clout. But Brexit is now a fact. As a Nato and UN Security Council member, G7 economy and nuclear power, the UK still matters.

The new role, to be set out in the imminent security and foreign policy review, draws on Brexiters’ twin belief in UK exceptionalism but also that leaving the EU was the shock therapy needed to make a sluggish economy more competitive. In Prime Minister Boris Johnson’s words, the UK is “a nation that is now on its mettle”.

There is a model for a once-mighty empire, eclipsed by newer powers, finding a way to rise again. It is not a country, but a company: Microsoft. Crunched between Apple and Google, Microsoft switched from a failing strategy of desktop domination to services built around customers. For Brexit Britain, the Microsoft model is instructive.

Inevitably, money is a main driver. The spending review will tackle defence costs, and resources will shift from the army into drone technology and cyber security. One person close to the review predicts a cut in troop numbers from 82,000 to about 75,000.

Many of the principles will be familiar, not least the centrality of the US alliance. But key to the new diplomatic and commercial approach is marketing British values as a comprehensive service, one with limitless chances to upgrade. Buy a Microsoft license and you get the Office suite, Teams, cloud services and so on. Buy into the UK and you get a champion of world order plus legal and education services and fintech expertise (of special interest to nations disconcerted by the spread of China’s Alipay).

On defence, the UK has pushed weaponry that is too high end. “Most places don’t need challenger tanks; they want small armoured patrol vehicles,” says one minister. Having more tailored products allows for upsell later on. Underpinning the package is a UK that champions free trade and a rules-based order (an easier sell before the government’s threat to breach an international treaty). “British values are at the centre of all this,” says a minister. Imposing Magnitsky-style sanctions for human rights breaches underscores the UK’s desire to be seen to be a good actor. It is pushing the case for turning the G7 into a “D10” group of wealthy, major democratic nations (adding India, South Korea and Australia). The theory is a virtuous circle of commercial and diplomatic goals.

This leads us to the review’s buzz phrase, the “Indo-Pacific tilt”. Next year will see a formal push to join the CPTPP, the trade pact that includes Japan, Australia, Canada, Mexico, Chile and Vietnam. This would place the UK in an expanding trade bloc.

But the tilt goes further. Dominic Raab, the foreign secretary, has put effort into courting Vietnam, though its current appetite for UK exports is tiny. Indonesia, Malaysia, Singapore and Thailand are also a focus. He laments “the intellectual laziness” of looking only at the major players. The tilt will inform defence decisions, boosting funds for the navy — maritime support for premium clients.

It is a decent notion and one that offers Brexiters a story to tell. Asia is the rising market. To adapt a Microsoft slogan, the UK wants to be “where’s next”.

How far this can be taken is arguable. The economic benefits of a tilt from Europe will take years to materialise. The UK is not a military power in the region, nor the only western country targeting a rising Asian middle class. The export opportunities outside Japan and China are real but small. The UK is also wary of going too far in souring relations with China, fear of which is the glue uniting the other nations. Decisions such as pushing Huawei out of its 5G development, defiance over Hong Kong and the moves to cut reliance on strategic Chinese investment and goods are already alienating Beijing.

And the tilt must not become a reason to neglect Europe or its markets. A prime policy goal must be ensuring stability in the UK’s backyard. History shows few European crises stop at the Channel.

Ministers seem to see Nato as the only relevant vehicle here. German overtures to maintain something akin to the E3 security grouping of France Germany and the UK have been rebuffed by London, which prefers ad hoc co-operation. This is a mistake. Influence comes not only from makeshift alliances but from routine collaboration.

A tilt is good but it must not unbalance the entire edifice. Britain as a service should be competitive in all markets, especially its nearest one.
Newsletter

Related Articles

0:00
0:00
Close
UK Met Office Issues Heatwave Alerts for London and Southern England
Keir Starmer Blocks Earlier World Cup Kick-Off Time for England Match Against Mexico
NHS Digital Transformation and Media Consolidation Highlight UK Policy Priorities
UK Government Pushes Digital Trade Rules to Cut Export Costs for Businesses
Bank of England Plans Leverage Rule Changes to Support Government Bond Market
UK Police Operation Targets Organised Immigration Crime Networks With Hundreds of Arrests
Yvette Cooper Calls for Global AI Rules to Prevent Security Risks
NHS Begins Major AI Expansion Through £10 Billion Digital Investment Programme
UK Government Tightens Rules on Political Donations to Limit Foreign Influence
Keir Starmer Defends UK Defence Spending Plan at NATO Summit in Turkey
Comcast’s Sky Agrees £1.6 Billion Deal to Acquire ITV Media and Entertainment Division
Senior NHS Doctors Vote in Favour of Renewed Strike Action Over Pay Dispute
Andy Burnham Set to Succeed Keir Starmer as Labour Leadership Nominations Open
Microsoft Lays Off 4,800 Employees and Xbox Suffers the Hardest Blow
Deep Purple Has Released Its Best Album in Decades
Office for National Statistics Updates Historical Investment Data Review to Improve Accuracy
Department for Science, Innovation and Technology Highlights Economic Gains From Digital Inclusion
Debate Intensifies Over UK Defence Strategy and Domestic Security Priorities
Report Warns Full Transport Accessibility Could Add £176 Billion to UK Economy Annually
Medicines Regulator Approves First Targeted Treatment for Advanced Merkel Cell Skin Cancer
Government Commits £22 Million to Brighton Seafront Infrastructure Renewal and Transport Safety
National Security Bill Returns to House of Commons Amid Calls to Protect Humanitarian Work
Government Tightens Overseas Political Donation Rules to Strengthen Safeguards Against Foreign Influence
NHS Maternity Reform Expands Central Oversight After Critical National Review
Dover Border Warnings Highlight Post-Brexit Pressure on Cross-Channel Trade
Private Nuclear Consortium Advances £35 Billion Small Reactor Strategy in UK
UK Labour Leadership Signals Shift Toward Reindustrialisation and Regional Power
House of Lords Debates Rail Nationalisation Bill to Create Great British Railways
Scottish Affairs Committee Expands Inquiry Into SNP Financial Conduct
Evri Launches £1.2 Million Defamation Case Against BBC Over Panorama Investigation
Port of Dover Warns of Border Delays as EU Entry-Exit System Looms
Nigel Farage Referred to Standards Watchdog Over Alleged Undeclared Benefits
UK Government Faces Scrutiny Over Claimed AI Datacentre Investment After FOI Findings
UK and India Finalise Trade Agreement Rules Ahead of Mid-July Implementation
UK Government Establishes National Maternity Commissioner After Major Review of NHS Care Failures
Private Consortium Plans £35 Billion UK Nuclear Programme Targeting Small Modular Reactor Rollout
Andy Burnham Sets Out Ten-Year Reindustrialisation and Devolution Plan as Leadership Transition to UK Premiership Advances
Morocco and France Advance as 2026 FIFA World Cup Enters Quarterfinals.
Historic 2026 Tour de France Opens in Barcelona With Revamped Team Time Trial.
Global Mergers and Acquisitions Approach $4 Trillion Defying Geopolitical Tumult.
Negotiators Advance 20-Point Framework for Gaza Ceasefire and Demilitarization.
OECD Warns Middle East Conflict Will Depress Global Economic Growth.
Ukrainian Drones Strike Major Oil Terminal in St. Petersburg.
World Meteorological Organization Issues Urgent Alert Over Rapidly Intensifying El Niño.
United States Commemorates 250th Anniversary With Diplomatic Summits and Global Flotilla.
Iran Begins Days-Long Funeral for Supreme Leader Khamenei Amid Strait of Hormuz Standoff.
Technology giant reports surging carbon emissions driven by artificial intelligence infrastructure demands.
Artificial intelligence adoption accelerates workforce reductions across the technology and financial sectors.
Global technology and financial conglomerates collaborate to launch a new stablecoin standard.
United States regulators lift export restrictions on a major frontier artificial intelligence model.
×