The aftermath of Brexit sees top-paid consultants, bankers, and lawyers in the UK become vulnerable to the fluctuations of the global economy, a phenomenon typically associated with factory workers, according to a report by the Resolution Foundation. This sudden shift in economic vulnerability indicates a shift from the earlier 2000s, where domestic factory workers were the most susceptible to financial pressure resulting from cheaper Chinese imports.
This change is seen as an immediate consequence of the UK’s decision to bank on exporting services in a quest to establish its status as a finance hub. “We need to worry less about foreign factories replacing our own, and more about foreign firms no longer wanting our services,” the report has noted. The valuable service sectors are now the most at-risk in the face of international trade shocks, unlike the earlier focus on manufacturing industries.
This mammoth shift exposes the UK’s vulnerable position when global economic trends sway. The unpredictability of the post-Brexit era demands that the UK reassesses its strategies around international trade relations.
This startling analysis and its broader ramifications were highlighted in a Bloomberg Tax report, which offered further insights into the adjustment required by UK economy and policies.