London Daily

Focus on the big picture.
Tuesday, Nov 03, 2026

War has highlighted the geopolitical folly of Britain’s departure from the EU

War has highlighted the geopolitical folly of Britain’s departure from the EU

As memories are revived of the second world war and the 1970s, it is time for a major rethink of economic strategy
The Australian comedian Bill Kerr used to begin his BBC appearances with: “I don’t want to worry you, but …” Funny how those words came back to me last week as I watched the television coverage of the criminal bombing of homes in Ukraine.

Some of us are old enough to remember Hitler’s bombing of London, Coventry and elsewhere, not forgetting Britain’s bombing of Dresden. Kurt Vonnegut’s book about it, Slaughterhouse-Five, is a disturbing classic.

It was because European, and American, leaders – let alone their people – never wished to witness such horrors again that the European movement began. Now here we are, with the tyrant in the Kremlin repeating such horrifying scenes in Europe, yes Europe.

Putin is the modern epitome of Lord Acton’s famous and well-phrased dictum: “Power tends to corrupt and absolute power corrupts absolutely.”

Quite apart from the inhumanity and carnage, in his infinite folly Putin has set off a process of economic and social disruption which compounds the many obvious crises that the world already faced.

As energy prices soar, memories are being revived in the UK of the 1970s, when the first oil crisis of 1973-74 was a major factor in unseating the 1970-74 government of Edward Heath, and also sowed the seeds of the ultimate failure of the Wilson and Callaghan governments of 1974-79.

The sight of our egregious prime minister Boris Johnson going, oil can in hand, to Middle Eastern dictators to plead for economic help to counteract damage inflicted by another dictator, Putin, evokes an uncomfortable memory. When Labour chancellor Denis Healey was besieged in 1976 by rampant inflation and a balance of payments crisis, the Treasury’s top civil servant, my good friend the late Sir Douglas Wass, tried to lighten the mood by saying: “It could be worse, Chancellor. The Russians might be invading.”

Yes, well, let us not go there.

I am sure that when he first had chancellorial ambitions, Rishi Sunak was not expecting to have to cope with echoes of the 1970s. But here we are, with inflation accelerating and the chair of John Lewis, Dame Sharon White, a highly respected former Treasury official, worrying that the rate of inflation may be heading once again for “double digits”.

True, inflation has been exacerbated by shortages provoked by the pandemic. It has also been aggravated by the serious impact on food, not least grain, and other shortages resulting from Putin’s war. But something else has been driving prices up all over the place, and that is – you have no doubt guessed it – the mounting impact of Brexit.

On which subject I recently had an interesting encounter with a Remainer British expat who was visiting his Brexiter friends in assorted home counties havens. To his surprise, he found that most of them were admitting in private but could not bring themselves to say so publicly: “Brexit is a catastrophe.”

Of course, it has not yet unseated the chief elected culprit, Johnson, because he keeps being let off the hook by other distractions, such as Covid – now apparently reviving – and the awful tragedy of Ukraine.

But the war in Ukraine has highlighted the geopolitical folly of Britain’s departure from the EU. It has brought European nations together, and left the UK trailing behind, while the absurdity of “global Britain” and aircraft carriers being sent to the far east becomes ever more apparent.

Brexiter Sunak faces one hell of a task with his spring statement this week. The soaring cost of energy, as in the 1970s, is both inflationary in driving up prices and deflationary in acting as a depressant on demand in the real economy. Sunak should be telling us that Brexit was a mistake, and that a major reconsideration of economic strategy is required.

He himself is very well off. So are the “oligarchs” Johnson and co used to cultivate until the popular tide turned against them. Many people are not so fortunate. As Francis Bacon said: “Fortunes … come tumbling into some men’s laps.”

Oligarchy in ancient Greek meant rule by the few. Strictly speaking, the men referred to today as oligarchs are not rulers but rich men who have plundered the Russian nation’s resources. As Aristotle says in The Politics, “sovereignty”, when they tired of tyrants, was “exercised in oligarchy by the rich”.

It is an awful commentary on the “values” of Johnson and Sunak’s predecessor George Osborne that they are up to their necks in the scandal that has made London, nicknamed Londongrad, the money-laundering capital of the world. However, as my mother would have said: “It will all come out in the wash.”
Newsletter

Related Articles

0:00
0:00
Close
House of Lords Advances Representation of the People Bill to Modernize Electoral Law Ahead of General Election
Financial Markets and Private Equity Assess Tax and Corporate Realignment Following Recent Chancellor Budget Adjustments
Justice Committee Warns Legal Aid Is a Service in Managed Decline Due to Inadequate Government Funding Responses
Royal Navy Intercepts Russian Intelligence Vessel and Warships Across Intensive North Sea Operations
Business and Trade Committee Slams Government Policy on China as Fragmented and Lacking Strategic Direction
Home Secretary Shabana Mahmood Softens Immigration Plans Following Intensive Cabinet Backlash Over Settlement Timelines
Automotive Industry Data Reveals Continued Acceleration in Battery Electric Vehicle Registrations Across British Dealerships
High Court of England and Wales Rules on Landmark Legal Challenge Regarding Local Government Housing Mandates
Department for Energy Security and Net Zero Approves Expanded Offshore Wind Infrastructure Along Scottish Coastline
Competition and Markets Authority Launches Broad Investigation Into Artificial Intelligence Infrastructure and Cloud Partnerships
United Kingdom and European Union Launch High-Level Preparations for Bilateral Defense and Security Summit in Brussels
National Health Service England Unveils Emergency Workforce Reforms to Alleviate Winter Accident and Emergency Pressures
Chancellor Rachel Reeves Finalizes Autumn Budget Adjustments to Meet Fiscal Rules and Fund Public Services
Bank of England Prepares for Interest Rate Decision Amid Rising Bond Yields and Inflationary Pressures
House of Lords Begins Detailed Legislative Scrutiny of Representation of the People Bill and Cyber Security Laws
Metropolitan Police Detain More Than Three Hundred Individuals Following Large-Scale Demonstration Outside London Embassy
Home Office Prepares Stricter Residency Rules Requiring Vulnerable Migrants to Wait Decade for Settlement Rights
Professional Mental Health Bodies Demand Statutory Regulation for Counsellors and Psychotherapists
National Grid Confirms Construction of Britain's Largest Electrical Substation to Power Teesside Data Centre
Prime Minister Keir Starmer Travels to Samoa for Commonwealth Summit Amid Debates on Economic Cooperation and Reparations
Home Office Implements Enhanced Digital Border Controls and Visa Processing Systems at Major Airports
Office for National Statistics Reports Stable Employment Participation Rates Across Regional Labor Markets
Department for Business and Trade Announces Strategic Partnership to Secure Critical Mineral Supply Chains
Scottish Government Unveils Regional Economic Development Strategy to Boost Advanced Manufacturing in Glasgow and Dundee
Treasury Officials Review Taxation Frameworks and Capital Gains Rules Ahead of Autumn Budget Disclosures
National Health Service Leaders Warn of Winter Capacity Pressures Across Acute Care Facilities
Bank of England Prepares for Key Interest Rate Decision Amid Sticky Inflation and Fiscal Policy Pressures
Home Office Expands Border Security Operations and Intelligence Sharing With European Partners
Office for National Statistics Reports Modest Retail Sales Growth Ahead of Crucial Christmas Trading Season
Welsh Government Unveils Strategic Plan to Boost Regional Technology Innovation and Digital Skills Training
Department for Environment Food and Rural Affairs Implements New Agricultural Subsidies Framework for English Farmers
Scottish First Minister John Swinney Announces Major Regional Infrastructure and Green Energy Investment Strategy
National Health Service Leaders Warn of Severe Winter Pressures and Mounting Accident and Emergency Backlogs
Bank of England Monetary Policy Committee Signals Cautious Interest Rate Path Amid Persistent Services Inflation
Chancellor of the Exchequer Rachel Reeves Finalizes Autumn Budget Framework Aiming to Close Public Sector Fiscal Gap
Department for Science, Innovation and Technology Prepares Enhanced Artificial Intelligence Safety and Cyber Defense Frameworks
United Kingdom Government Expands International Sanctions Framework Against Russian Shadow Fleet and Financial Enablers
Institute of Directors Reports Sharp Post-Budget Drop in Business Confidence Despite Long-Term Investment Intention Shifts
Chancellor John Healey Defends Sweeping Fiscal Adjustments and Household Support Packages Following Autumn Budget
Parliamentary Petitions Committee Schedules Major Legislative Debates on Special Educational Needs and Non-Stun Meat Labelling
Regional Devolution and Good Growth Fund Frameworks Reshape Local Government Funding Across English Regions
Loughborough University Economic Analysts Highlight Substantial Uncertainty Surrounding Public Sector Efficiency Savings
British Legal Sector Drives Sixty Billion Pounds in Annual Economic Output While Employing Over Half a Million Professionals
Law Society Welcomes New Better Regulation Executive While Pressing for Long-Term Legal Aid Funding Reform
Metropolitan Police and Security Services Heighten Operations Across London Ahead of Large-Scale Public Demonstrations
Bank of England Economists Scrutinize Corporate Tax Adjustments and Public Sector Borrowing Pressures
Chancellor John Healey Defends Autumn Budget Tax and Spending Allocations Following Intense Parliamentary Scrutiny
Department for Environment, Food and Rural Affairs Implements Strict Water Quality Monitoring Rules Following Severe Rainfall and Flooding
Welsh Government Unveils Comprehensive Regional Housing Strategy to Address Rural Affordability and Homelessness Pressures in Cardiff
Office for National Statistics Reports Slowing Consumer Price Inflation and Steady Retail Performance Across United Kingdom Markets
×