Columnist Alex Brummer argues that Britain should prioritize embracing artificial intelligence (AI) rather than seeking to rejoin the European Union. Brummer asserts that an obsession with aligning with the EU is misguided and will not significantly ease living standards pressures in the UK.
While acknowledging the need for certain integrations, such as exclusion from Europe's defense fund being detrimental, Brummer suggests that a return to the EU would not fundamentally alter the UK's economic trajectory. He points to data indicating that Britain's GDP per capita growth has been in line with France and ahead of Germany since Brexit. The UK's competitive advantage, he contends, lies in its lighter, services-based economy, which has seen export growth.
Brummer highlights that the UK's knowledge economy, including sectors like pharmaceuticals and firms such as Relx and the London Stock Exchange Group, is particularly susceptible to AI disruption. He suggests that companies like Cambridge Aerospace, with their AI-driven drone and missile interceptor technology, represent the future. The prospect of AI and data centers dominating future prosperity is acknowledged as potentially disturbing.
He attributes Britain's economic stagnation more to the pandemic, the war in Ukraine, and Middle East turmoil than to Brexit. Brummer also touches upon domestic issues, noting that while Labour's focus on planning reforms and housing is valid, the sector faces challenges. High costs for materials, energy, and debt interest, alongside developers' resistance to affordable housing commitments and the capacity issues of housing associations and councils, are cited as impediments. Homebuilder Crest Nicholson's scaling back of targets is presented as an example of these difficulties.
Additionally, Brummer mentions the reported decision by Business Secretary Jonathan Reynolds to reject an exit tax for companies leaving the UK, while emphasizing the need for tax incentives to retain innovators and the use of the National Security & Investment Act to protect against overseas acquisitions.