Brexit campaigner-in-chief Nigel Farage holds a rally in Clacton-on-Sea in 2019. Getty
Brexit campaigner-in-chief Nigel Farage holds a rally in Clacton-on-Sea in 2019. Getty
Brexit campaigner-in-chief Nigel Farage holds a rally in Clacton-on-Sea in 2019. Getty
Brexit campaigner-in-chief Nigel Farage holds a rally in Clacton-on-Sea in 2019. Getty

Brexit wars return to seaside battlefield as Britain feels seven-year itch


Tim Stickings
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Seven years on from Britain's EU referendum, the Brexit wars have not gone away – least of all in the seaside town of Clacton.

Voters in the the symbolic Brexit-backing stronghold have been under an anthropological microscope ever since the UK Independence Party pulled off its first ever by-election victory there in 2014.

Now, after the BBC chose an all-Clacton audience to speak for Brexiteers in an anniversary TV debate, they are a test case for whether Britain is coming to regret its referendum vote in 2016.

There is no doubt that some people in Clacton, where hot summer weather brought scores of elderly visitors to the seafront this week, still feel strongly about Brexit.

Robert Hodgkins, who works at a corner shop till in the town, said he stood by Clacton's view that “we don’t want to be part of Europe”.

“We didn’t join it properly. We just sat on the fence so we got all the punishment and none of the benefits,” he told The National of Britain’s 47-year EU membership.

At the same time, there is genuine hope in the pro-EU camp that some of its perceived enemies are starting to change their minds.

It is rare these days to find a poll that celebrates Britain’s EU exit.

A YouGov survey this month showed 56 per cent believe Brexit was the wrong move, with 69 per cent saying the government had handled it badly.

The external shocks of Covid-19 and the war in Ukraine muddied analytical waters around the impact of Brexit.

But some blame it for everything from airport queues and labour shortages to weak growth and the UK’s stubbornly high inflation rate of 8.7 per cent. Former Bank of England chief Mark Carney is among those linking Brexit to high prices.

The UK has taken cautious steps to clear the air with Europe, with King Charles III dispatched to mend bridges with Germany, and a plan to purge the last remnants of EU law has been watered down.

Some Leavers admit the new era has not lived up to their hopes. Former Brexit Party politician Christina Jordan said "our Brexit opportunities have been squandered" even as she defended the 2016 vote.

Alastair Campbell, the former Labour spin doctor and an ardent Remainer on the panel taking Leave voters’ questions in Clacton, speculated that some of them might feel “let down”.

Elderly, mostly white and economically adrift, Clacton was a symbol of the “left behind” narrative around the EU vote, and the town was frequently courted in person by another Brexit ringleader, Nigel Farage.

Social media has been awash with unkind Remainer comments about its people since the special edition of Question Time was announced.

John Hyde, who grew up in Clacton and now works in the City of London for the Law Society Gazette, said negative stereotypes did not tell the “full story” of underinvestment and economic decline in his hometown.

More than half the area’s population is over 50, according to the most recent census, and Mr Hyde says younger people who might have been more pro-EU were driven away by a lack of job opportunities.

“This town was cynically identified as a Petri dish for testing out the kind of rhetoric that won the referendum,” said Mr Hyde.

He said people who might be angered by Brexiteers on the BBC programme should try to “understand the hardship and exploitation they have been through”.

Clacton Pier in the east of England is popular with elderly visitors. The National
Clacton Pier in the east of England is popular with elderly visitors. The National

Recent studies that branded Clacton the UK’s “worst seaside town” and a hotbed of antisocial behaviour have done nothing to improve its reputation in the media.

Some of this is unfair. Clacton, for all its traditionalist, Union Jack-waving image, has given homes to Ukrainian refugees and has a wind farm off its coast. The seafront has pleasant flower gardens and is not necessarily the most hardline part of the county.

One shopkeeper in Clacton said many locals felt disillusioned by the treatment of Brexiteer ex-prime minister Boris Johnson, who was forced out in a party coup last year and quit parliament this month.

But “no one has changed their mind that I know of,” he said of people in Clacton, which sits in a local authority where almost 70 per cent of voters backed Brexit in 2016.

“Things have moved on because the person who was trying to get Brexit done has been stabbed in the back.”

BBC presenter Fiona Bruce said the audience in Clacton included Leave voters “some of whom are happy with that decisions, some of whom may have changed their mind – others may be uncertain”.

Boris Johnson profited from public exhaustion over Brexit to win a 2019 general election but was forced from power last year. AP
Boris Johnson profited from public exhaustion over Brexit to win a 2019 general election but was forced from power last year. AP

One view expressed in Clacton town centre was that Prime Minister Rishi Sunak had reneged on the promise to tear up EU law but that Labour leader Keir Starmer would “take us back in”.

In fact, Mr Starmer has ruled out rejoining the EU amid a reluctance from Labour to reopen the bitter Brexit debate that paralysed British politics from 2016 to 2019.

The Liberal Democrats are the only major UK-wide party that explicitly supports rejoining. The aim of Scotland's ruling nationalists is to become an independent nation and then re-enter the EU.

But Mr Sunak, too, has sought to draw a line under Brexit by striking a new deal on Northern Ireland and adopting a friendlier tone towards EU capitals than Mr Johnson often did.

Although there was some minority enthusiasm for Brexit among hedge fund managers, City of London chiefs have similarly called for banks to “engage productively” with partners in the EU.

Two economists, Jun Du and Oleksandr Shepotylo, wrote in a study last week that the UK appeared to have missed out on a recovery in global trade after the pandemic.

The latest figures make “clear that the post-Brexit export challenges have persisted beyond the initial teething period”, they wrote for the think tank UK in a Changing Europe.

“The reality faced by the UK is that it is harder to trade with the EU.”

The bio

Favourite book: Peter Rabbit. I used to read it to my three children and still read it myself. If I am feeling down it brings back good memories.

Best thing about your job: Getting to help people. My mum always told me never to pass up an opportunity to do a good deed.

Best part of life in the UAE: The weather. The constant sunshine is amazing and there is always something to do, you have so many options when it comes to how to spend your day.

Favourite holiday destination: Malaysia. I went there for my honeymoon and ended up volunteering to teach local children for a few hours each day. It is such a special place and I plan to retire there one day.

MATCH INFO

Who: UAE v USA
What: first T20 international
When: Friday, 2pm
Where: ICC Academy in Dubai

UAE currency: the story behind the money in your pockets
UAE%20v%20West%20Indies
%3Cp%3EFirst%20ODI%20-%20Sunday%2C%20June%204%20%0D%3Cbr%3ESecond%20ODI%20-%20Tuesday%2C%20June%206%20%0D%3Cbr%3EThird%20ODI%20-%20Friday%2C%20June%209%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3EMatches%20at%20Sharjah%20Cricket%20Stadium.%20All%20games%20start%20at%204.30pm%0D%3Cbr%3E%0D%3Cbr%3E%3Cstrong%3EUAE%20squad%3C%2Fstrong%3E%0D%3Cbr%3EMuhammad%20Waseem%20(captain)%2C%20Aayan%20Khan%2C%20Adithya%20Shetty%2C%20Ali%20Naseer%2C%20Ansh%20Tandon%2C%20Aryansh%20Sharma%2C%20Asif%20Khan%2C%20Basil%20Hameed%2C%20Ethan%20D%E2%80%99Souza%2C%20Fahad%20Nawaz%2C%20Jonathan%20Figy%2C%20Junaid%20Siddique%2C%20Karthik%20Meiyappan%2C%20Lovepreet%20Singh%2C%20Matiullah%2C%20Mohammed%20Faraazuddin%2C%20Muhammad%20Jawadullah%2C%20Rameez%20Shahzad%2C%20Rohan%20Mustafa%2C%20Sanchit%20Sharma%2C%20Vriitya%20Aravind%2C%20Zahoor%20Khan%0D%3C%2Fp%3E%0A

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

UAE currency: the story behind the money in your pockets
THE%20SPECS
%3Cp%3EEngine%3A%203-litre%20V6%20turbo%20(standard%20model%2C%20E-hybrid)%3B%204-litre%20V8%20biturbo%20(S)%0D%3Cbr%3EPower%3A%20350hp%20(standard)%3B%20463hp%20(E-hybrid)%3B%20467hp%20(S)%0D%3Cbr%3ETorque%3A%20500Nm%20(standard)%3B%20650Nm%20(E-hybrid)%3B%20600Nm%20(S)%0D%0D%3Cbr%3EPrice%3A%20From%20Dh368%2C500%0D%3Cbr%3EOn%20sale%3A%20Now%3C%2Fp%3E%0A
Updated: June 23, 2023, 7:03 AM