Monday, 24 October 2016

Surviving Brexit : For Generation X and Millennials

As Brexit looks ever more inevitable, it's pretty imperative that as a member of GenX and almost a millennial - I was born in 1979. I have to make sure I'm in the best position to deal with the next twenty years. Hopefully we will avoid a recession but most analysts understand our growth will not be what it could have been. Some of the things I have done, considered or been suggested to me are below. Not all of it is relevant to me, and may not be to you, but still thought worth noting it all down in one place.

Some of this might look a little simple, and I'm happy to take any other advice in the comments.


Reduce fixed costs: Switch energy accounts, pay off credit card debt or if you can't, switch to 0% credit cards.

Renegotiate what you can : Out of fixed rate on your mortgage? Think about re-mortgaging with as long a fix as you can tolerate - ask about terms such as whether you can port the mortgage (move it to another house) or add to it if you want to move to a bigger house - which may be important for growing families.

Renting - what about housesharing if you aren't already?

Reduce variable costs: Downshift your grocery bill, take sandwiches to work. Yes, forgo the posh coffee, but the odd lipstick is OK if that's your thing.


Pension: Increase contributions to your pension - it appears with flat-lining growth, the boomers may have pulled another fast one on the generations behind them. Not only do we have defined contributions in the main, but seems we may not get as much out of these pensions due to 2 decades of lost growth that we thought we were going to have. The answer : put more in your pension.

God knows what will happen to the state pension. Another post, another day.

Invest in a Stocks and Shares ISA and think about investing in funds aboard. There are quite a few good ones with low dealing fees - more details here

Brush up on your GCSE maths : You will be able to check what you will actually pay for your car finance or determine the best mortgage i.e. interest rate and fee.


Keep your money in $. May be more difficult than it looks, tho I am informed some banks offer accounts in USD for net creditors. I haven't tried this yet but looking into it.

More as I come across it.....

Tuesday, 18 October 2016

The Case for the Single Market : Rights, Economic Direction of Travel and Commercial Peace.

It strikes me that both pre and post referendum, those of us who really would have preferred to Remain, are actually failing to properly make the case for doing so.

Presuming that we accept the will of the British people and leave the EU, my own position is that we should move to either a transitional arrangement that keeps us in the Single Market, or adopt a permanent position that includes Single Market membership. I think this is possibly where the UK will end up, wilful Brexiteers nonwithstanding. I accept the evidence that says the overwhelming majority of the British public do not want to cut immigration if it costs them personally a single penny, and venture that we cannot read more into "a simple In/Out referendum" and it is revisionist to try.

So, starting from that point here goes.

However, what we need to do is look to the positives of this, not necessarily "Project Fear" or spending the whole argument on the back foot, rebutting whatever nonsense is being produced by the Hard Brexit camp. We need to make a positive case.


The three reasons I will put forward to stay within the Single Market are built around concentric circles - the status of the individual, the status of the UK and the status of the World.

1.  Citizen's rights

Plenty of UK nationals live abroad in the EU - 1.2 million is a good estimate . Their rights have been regarded as a bargaining chip but the right of residence by it's very nature should be inalienable. Removing rights from citizens is a serious business, not to speak of the fact if there is a deadline for removing rights from people, you'll find many unintended effects such as those who are able to, start moving to places where their right will not be removed.

We also have the right of freedom of movement around the EU. My proposition of remaining within the EEA is a positive for all UK citizens, meaning they can continue to enjoy their rights of living and working within the EU. This is also a positive for businesses wanting to hire from other countries.

3. Economic direction of travel.

Joining or staying in the Single Market has been our strategy for the last 40 years. There is potentially a case for moving to being a different sort of economy, however it's a borderline impossibility to, as it were, turn the tanker [of the British Economy] around on an Article 50 shaped sixpence.

Our current account deficit is relatively very bad next to other OECD countries.

We import far more goods than we export, tho we do have a surplus in services (i.e. we export more services than we import). It is important that our economy becomes more balanced and I do see this as an important policy objective, but we cannot do it overnight. Therefore, to offer certainty to businesses, we need to have a model with minimum disruption, at the very least in the short term.

It appears the British public agree

It is also imperative given the current account deficit to at least preserve the surplus in services, so we must make sure that people continue to be able to work in the EU where they are needed, with as little friction as possible.

2. Globalisation and it's contents

The fact that took us into the Single Market, known as the Common Market in 1975 was the part of a wider move by the world towards globalisation, and it was important that we did this, so as not to be left behind. The Labour government, and later the Tories (at least the leadership whilst they were in power) did understand this intuitively. Remaining close to our main trading partners is not merely desirable, it's imperative.

The world senses that removing trade barriers and encouraging migration is a good thing, and the more it happens, the less poverty and war there will be. Though contentious, this "less war" theory is advanced enough an idea to have a name and that is Commercial Peace

Morally, to be honest, all global citizens should be thinking about being drawbridge down type of people, as it leads to less poverty, less war and more value being created worldwide. Citizens of the UK and the World, this could indeed us taking part  the Great Global Move Forward, if we are brave enough to do it.

I put it to you that with these three points in favour of remaining in the Single Market, that this is what the UK can and should do.

Monday, 10 October 2016

Not having a Parliamentary vote on Brexit is a mistake....

I think Theresa May's decision not to have a Parliamentary vote on Brexit is a mistake.

Firstly, because it means that it's all on her. Without a mandate from Parliament the "bumpy ride" of Brexit is sure to end up with a blame game occurring. And without even being able to have a whipped operation of her own MPs behind her, that normal human nature in face of blame will be to ask who else, or who is majorly to blame.

Secondly, her Ministers for Brexit have already shown form on blaming anyone or anything than the idea of Brexit or themselves. At the last count, if Brexit fails it will either be because

- Remainers talk down the pound (?!)
- The Chancellor is "grieving" about Brexit (!?!?)
- British business spends too long on the golf course (?)

How much easier would it be just to blame the PM?

Thirdly, change management is mostly about bringing people with you, not telling them there are many, many reasons why you don't even get to express your view. This is the point of consultations, so people feel listened to and so you get feedback on possible elephant traps in your plan. Not doing this means people feel aggrieved and concerned, and start talking to each other.

If Tony Blair hadn't had a Parlimentary vote on the Iraq War, I don't think he would have survived as long as he did as the war descended further into chaos, he did have the fact that most of the Government and Opposition had backed his stance. I think Theresa May not doing this over Brexit is very risky indeed.

Fourthly, it is untrue to say there is not a government in waiting for this Government to fall to. There is, it is headed up by George Osborne (or possibly Boris Johnson) and it would be comprised of all the MPs sacked by Mrs May and currently waiting quietly on the Tory backbenchs.

Don't count your Brexit chickens until they are hatched.

Tuesday, 4 October 2016

Relationship counselling and leaving the EU

The divorce analogy for Brexit annoys me because it's simplistic and moreover takes people in odd directions about mid-life crisis and tends to assume Britain is a man as well, for some reason I can't quite fathom.

Anyway, the other side of this is how we repair our country in the middle of this crisis. As the pound continues to fall and a Tory conference continues, a conference that was told to produce one Brexit announcement per department to be announced this week. These ever more baffling announcements arrive with their particularly strange angle, leaving the rest of Britain reeling about just what Theresa May is going to do next.

However, picking ourselves up, in amongst the Loud Noises, it would be good for at least some of us to know the other side of divorce, those who manage to stay together with a better relationship because of relationship counselling.

Key to these concepts are understanding without necessarily agreeing: This can be pretty difficult as when you disagree with someone especially if they are telling you something unpalatable about yourself such as "out of touch metropolitan elite". However, relationship counsellors say it's important to at least understand where the other side are coming from.

So I'm going to try and at least praise the good Brexit policies, wherever I can find them. Today I thought lifting the cap on the number of doctors the UK trains, would be an unalloyed good thing, only for Theresa May to hedge the answer to "What happens to the foreign doctors after the UK ones are trained?" and leave us with the impression that the foreign doctors will be deported after 2025.....

Back to positivity tho, the objective is to understand the other side, to prevent your own position becoming too retrenched. The idea is to demonstrate understanding to help the other side understand your position and hopefully work together. Maybe this is possible, though it looks increasingly likely that it is not.