WILL A SECOND COVID-19 LOCKDOWN COINCIDE WITH A ‘NO DEAL’ BREXIT? | WHAT REALLY HAPPENED

WILL A SECOND COVID-19 LOCKDOWN COINCIDE WITH A ‘NO DEAL’ BREXIT?

When I last posted an article about Brexit in May I discussed how the convergence of a possible world trade organisation scenario with the EU and the Covid-19 lockdown measures would serve to exacerbate the economic strain that the UK is currently being subjected to. I argued that as the devastation brought about by the self imposed lockdown became more profound, not only would a WTO Brexit compound matters but it would also put further downward pressure on sterling and prove a harbinger for a significant spike in inflation over the coming years.

Four months on and a number of developments have since occurred. As I predicted, the transition period was not extended, meaning it will come to an end on the 31st December 2020. Shortly afterwards a cabinet office document of ‘worst case scenarios‘ was revealed that detailed what may happen should a no deal Brexit coincide with a ‘second wave‘ of Covid-19. One possibility raised was how the government could decide to deploy the military on the streets of Britain in the event of public disorder.

Earlier this month, with trade negotiations floundering, Boris Johnson announced that if a deal cannot be agreed by October 15th the UK will walk away and revert to WTO tariffs. Following on from this was his latest intervention came just days ago when he unveiled renewed Covid-19 restrictions on the population after a rise in those testing positive for the virus, just as the final rounds of Brexit negotiations are due to begin.

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