Boris Johnson gambled, and it paid off handsomely. The strategy, skilfully executed, provides the Conservative Party with a once in a generation opportunity to remould the UK economy.
Brexit will still need to be addressed – no small challenge. But the political energy can now be devoted to the detail of a trade agreement, not expended on battling factions within the Conservative Party, and without worrying about the opposition.
More importantly, the Government can focus on the micro reform that will deliver faster economic growth.
In many respects, the UK economy remains fundamentally strong. The UK remains very close to, if not at full employment. The UK has continued to attract sizeable capital inflows into its strong, emerging technology sector ever since the 2016 referendum. House prices have started rising more quickly, regardless of Brexit. There is huge, pent-up demand for housing. Commercial property vacancy rates remain close to historic lows.
There are grounds for optimism, but the longer-term structural deficiencies of the UK can slowly be tackled. Boris Johnson’s advisor, Dominic Cummings, will have huge influence over government policy.
The emphasis placed (and insights offered) by Mr Cummings on education (reform), science and innovation, to help bridge the gap between the North/Midlands, and London/South east, will be critical to developing effective government intervention.
