Ross Clark

Brexit has become the inverse of a pair of rose-tinted spectacles. It is the lens through which all negative economic news has come to be interpreted – and magnified. Yesterday, the IMF published its latest forecasts for global economic growth. One might well ask what use this material is, given the IMF’s past record at economic forecasting. But whether these forecasts are of any value or not, they have, predictably enough, been jumped on by the Remain-supporting media in order to scribble yet another chapter of anti-Brexit narrative. Indeed, according to this narrative, it is not just Britain which seems to be suffering now from the moronic, misinformed decision of the UK public to vote to leave the EU in 2016 – it is the entire world.

Have Leavers just blown their best chance of Brexit in a subconscious sort of way, because deep down, they never really wanted it? Matthew Parris makes this case in a typically eloquent Spectator column this week. He might be right, but they have not blown it quite so badly as Remainers have. Imagine how events would have turned out this week had the great mythical new political party of the centre actually existed – if it had an organisational structure ready to pounce on its big opportunity, along with a smattering of MPs of other parties ready to jump ship. Imagine if, in the 24 hours between the Brexit vote and the no-confidence vote, it had suddenly risen, serpent-like.

If, as seems inevitable, the Commons votes to reject Theresa May’s Brexit deal later today – thereby sparing Britain from the humiliation of being trapped in the backstop, forced to accept EU rules without having a say in them – the hero of the hour will be Dominic Grieve. Him and Anna Soubry, Nicky Morgan, Kenneth Clarke, Sarah Woolaston and a gaggle of other Remain MPs. Why? Because it was only thanks to them that the Commons is getting its meaningful vote on the Brexit deal. It was they who rebelled against the government in December 2017 to make sure that such a vote would be held.

Before Brexit: The Uncivil War is allowed to drift off into the ether, there is an important point which needs to be made, and yet which has not been addressed in all the reams of comment which have written about it. There is a gaping hole in its narrative. That narrative seems straightforward enough: Vote Leave won the referendum because its leader, Dominic Cummings, and his team of geeks realised that they could tap into a vast, lost constituency of Britons with whom politicians and traditional political campaigning methods had lost touch. This they did by analysing Facebook and other social media data and then hitting the lost voters – put at three million – incessantly with micro-targeted adverts.

On any other day of the week the Guardian is – with some justification – complaining about a housing crisis, with millions of young people priced-out of ever owning – or even renting – a decent home. Now, however, it seems to be treating with alarm news that prices are stagnating. 'UK house prices take pre-Brexit hit, says Nationwide' declared a headline this week – followed by news that house prices have, in fact, risen by 0.5 per cent over the past 12 months. That is a lot lower than we have become used to in recent decades, but isn’t it a good thing if rampant house price inflation has come to a halt? And is it really connected with Brexit? The housing market – outside London – never returned to the mania of pre-2008.

Britain is, of course, in a Brexit-driven recession of its own making, while other EU countries are powering on ahead without us. Or so we keep being told. The ideas is that we are distancing ourselves from European markets - and concerned manufacturers will move production to factories elsewhere in the EU. While this gloomy analysis appears to be confirmed every time the CBI, IMF and others publish their forecasts, it is becoming increasingly hard to square with the economic data. This morning, IHS/Markit published its monthly Purchasing Managers’ Index (PMI) for manufacturing – a measure of business activity which leads official government statistics on the economy.

There is never more excitement on the Left than when a Tory MP recants and concludes that his heartless party and its callous social policies are wrong. So it was on Friday when Nigel Evans, MP for Ribble Valley, announced that he had had a ‘road to Damascus conversion’ and realised that David Cameron’s legal aid reforms – which reduced the eligibility for legal aid – had made life harder for those who found themselves on the wrong end of a court case. It wasn’t pure altruism which had led him to this conclusion – Evans himself was acquitted on nine charges of sexual assault in 2014. While the case against him fell apart so, too, did his financial security. He complained that it had swallowed up his entire £130,000 life savings.

When Boris Johnson was foreign secretary, he was admonished for accusing the EU of wanting to administer ‘punishment beatings’ to Britain for its temerity in wanting to leave the EU. In the months since it has become clear just how apt his description was. At every turn, the EU has acted with one aim in mind: to try to ensure that Britain suffers from exiting the EU, in order to deter other member states from contemplating leaving the bloc. Today’s memo from the EU, laying out the plans for what would happen in the event of a ‘no-deal’ Brexit is a case in point. It is hard, reading this document, to reconcile it with the EU’s claim to be an organisation which promotes free trade and free movement of people and goods.

There is at least one person in Britain who would beat Theresa May in a contest to see how far they could kick a proverbial can down the road. Fortunately for her, it is the leader of the opposition. Why won’t he do it? Why won’t he table that motion of no confidence in Her Majesty’s government while it is bleeding by the roadside? Given a chance to deliver the coup de grace, he chooses instead to table a personal motion of no confidence in Theresa May which he knows the government can put off through lack of time, and which he knows would have no great consequences if she did lose it. No government in the past 40 years has looked quite so miserable, quite so open to being toppled by Parliament, and yet still he won’t do it.

For once, I think Jean Claude-Juncker might have a point. “Nebulous” was a pretty good description of Theresa May’s mission to Brussels. What, exactly, was she expecting from EU leaders that was also going to please her own backbenchers? She must have known the EU would stonewall her over the backstop. She seemed merely to be asking for ‘reassurances’ rather than a legal guarantee that Britain could not be trapped in the backstop – in spite of knowing full well that reassurances are not going to be enough to win over her Commons critics. To adapt Winston Churchill, May’s strategy has become a nebula trapped inside a smog, hidden within a miasma.  Yet there is such as easy way out of the mess.

The world of business is, apparently, appalled by the actions of the 48 or more Conservative MPs who have triggered a vote of no confidence in Theresa May as Conservative leader. According to the Institute of Directors, its members are ‘tearing their hair out’ over today’s news. The message seems to be that a change of Prime Minister is an unwanted distraction when the country is already in a state of crisis. Yet markets seem to disagree. The FTSE this morning is up by more than one per cent. However negatively bosses might see the potential end of Theresa May as Prime Minister, investors in their companies seem to be taking a rather more positive view. It is not the first time that a divergence has emerged between business leaders and investors over Brexit.

How painfully clear it is what happens next. Theresa May returns from her European travels with some kind of non legally-binding piece of paper saying that the EU would rather not enact the backstop if it can possibly avoid it, and, some time in January we finally have the crushing Commons defeat that we should have had today. Unless, that is, Conservative MPs finally overcome their chronic writers’ block and get their 48 letters to Graham Brady. It has become a received wisdom that May has somehow bought herself time by delaying the vote on the withdrawal bill – that she has stayed the executioner’s axe. Yet the opposite is true: by delaying the vote she has created the space for a leadership election.

The “People’s Vote” is celebrating the judgement by the European Court of Justice that Britain could unilaterally revoke Article 50 at any point up until 29 March next year and remain in the EU under existing terms. It destroys the argument that Michael Gove made last weekend: that reversing our decision to stay in the EU would lead to vastly inferior terms, the loss of Britain’s rebate and so on. And while the government still describes the judgement as hypothetical, it will also heap huge pressure on Theresa May if she loses tomorrow’s seemingly doomed vote on her withdrawal bill. Like it or not, she will have to fend off a reinvigorated campaign for a second referendum. But hang on a minute, is the ruling really only good news for Remainers?

Given how Remainers have lost no opportunity to accuse the official Leave campaign of telling porkies about how much money we send to the EU – £350 million per week according to Vote Leave but closer to a net £250 million once the UK rebate is taken into account – one might imagine that the 'People’s Vote' campaign would take extra special care over statements relating to financial contributions to the EU. But it seems not. It has been caught out doctoring a report written by an outside expert, leading to inaccurate claims about how EFTA members’ contributions to the EU are spent. Yesterday, 'People’s Vote' published a report entitled ‘Why Norway Plus Won’t Work’, with a foreword by David Miliband and Jo Johnson.

So will those Remainers seemingly hoping for a Brexit-related recession get what they want after all? This morning Purchasing Managers’ Index (PMI) for the service sector certainly points in that direction. The index, which is really just a questionnaire to businesses but which can give advance warning of swings in economic growth, fell to 50.4 in November, down from 52.2 in October and 54 in September. Anything above 50 denotes growth – so it doesn’t indicate we are yet in recession – but it suggests a steep plunge in activity and confidence which could well take us there. It would be foolish to deny any link with the Brexit crisis.

How Remainers are feasting on the ruling (although not final judgement) from the European Court of Justice suggesting that Britain could unilaterally revoke Article 50 at any point up until 29 March next year and remain in the EU under existing terms. If the final judgement confirms the ruling it will destroy the argument that Michael Gove made at the weekend – that reversing our decision to stay in the EU would lead to vastly inferior terms, the loss of Britain’s rebate and so on. It will also heap huge pressure on Theresa May if she loses next week’s seemingly doomed vote on her withdrawal bill. While Downing Street has described the ECJ ruling as hypothetical, she will have to fend off a reinvigorated campaign for a second referendum.