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After the Brexit storm, a semblance of order

By Web Desk
Mon, 07, 16

Theresa May has displayed the necessary ruthlessness to be prime minister. Within hours of taking office, she sacked some of the most illustrious members of David Cameron’s cabinet, notably George Osborne, the longtime chancellor and leader-in-waiting.

Having seized control, she now faces the momentous task of shaping a new role for Britain in Europe and the rest of the world.

After weeks of drift, the smack of firm government is welcome. The Bank of England’s decision to hold interest rates is, with the benefit of hindsight, also sensible. It contributes to the sense that a degree of stability is being restored, even if the BoE does cut next month.

Mrs May has offered a vision of a more inclusive Britain that “works for everyone” rather than “the privileged few”. Her words recognise public alienation with the establishment which crystallised during the EU referendum. Realising her ambitions will be difficult, given the weak state of the economy, the level of uncertainty and her slim 12-seat majority in the House of Commons.

The prime minister has pledged to deliver Brexit. But she also stressed, rightly, the importance of keeping the UK together. The implication is that, whatever settlement is reached with the EU, a pro-Remain Scotland will be fully consulted on the terms of divorce but cannot go its own way.

Brexit involves the most fundamental reshaping of Britain’s foreign policy since the 1960s. Mrs May’s confident start cannot disguise the scale of the challenge she faces. In the absence of a concrete plan from the Leave campaign, she must forge a strategy which avoids splitting her party or crippling the economy. She must engage with EU partners fearful that Brexit will spread contagion to the continent.

Mrs May’s foreign policy team is led by Brexiters. This makes a virtue of a necessity but is also a shrewd political move. Leading Leavers are now responsible for delivering the policy they so ardently willed on the country.

Boris Johnson’s appointment as foreign secretary has captured the most attention. The flamboyant former mayor of London is responsible for a litany of gaffes and outrageous statements, some stemming from his career as a newspaper columnist. He has a lot of ground to make up if he is to win trust on the international stage.

Mr Johnson is one booming voice in a larger foreign policy chorus. David Davis, a longstanding Eurosceptic who is now minister for Brexit, will be directly responsible for negotiating with the EU. Liam Fox, the international trade secretary, has the unenviable task of signing a host of trade deals with non-EU partners. Mrs May and the Cabinet Office will have the first and last word.

On domestic policy, Mrs May has sensibly combined continuity with a safe pair of hands. Philip Hammond, the chancellor, has already promised to scale back austerity to head off the economic shock of Brexit.

The greater uncertainty lies in Mrs May’s vision for a more inclusive economy. Combined with her earlier promises to put workers on company boards and to bear down on executive pay, this suggests a determination to occupy the political centre ground, even if that means borrowing from the centre left. She should not lose sight of what makes the UK globally competitive: the country’s flexible and open labour market.  Mrs May needs time to craft a new course for the country. She displayed more grit and resilience than her male rivals in the race for the leadership. These qualities, and a dose of luck, will serve her well in the coming months.