BLACKMAIL, DECEIT AND BULLYING

How the UK has lost its sovereignty

We hear a lot of fuss about the EU as a mighty threat to UK independence, but consider the following:

• Britain seems to have caved in to Saudi pressure and abruptly stopped a legitimate enquiry into the payment of hidden inducements to senior Saudi Arabian figures in order to secure a massive military contract. The government, under Tony Blair, cited the national interest, national security and the withdrawl of Saudi co-operation as the reason. Many in Britain, Europe and the US disagree with the government's decision. BAe Systems, the alleged transgressor, is almost the last large engineering and technology company left in British hands
• The UK government has allowed Britain to become a haven for tax avoidance and evasion, with special status apparently being accorded to the very rich, who can squirrel their wealth away in tax havens
• The London financial market seem to have achieved a status that is beyond the reach of democratically elected governments, who maintain a deafening silence about the speculative excesses of the investment and banking sectors
• The financial services industries have over many years abused, deceived and exploited their customers in a fashion that would have seen an ordinary citizen indicted and incarcerated for fraud. The first New Labour government in its early flush of idealism vigorously pursued transgressors who swindled their private pension customers, but very quickly lost their zeal in deference to wealth and power. Since then, government and regulators have indulgently let the financial sector away almost Scot free with a litany of malpractice.
• UK regulators have recently been delivered a raspberry by the House of Commons Treasury Select Committee for limply standing on the sidelines as the investment banking sector indulged in wild orgies of speculative gambling, following deeply flawed business models and taking the whole economy to the brink of recession
• The UK government seems to welcome the disposal of most of Britain's science and technology companies to foreign buyers - to an extent that would be quite unacceptable in the United States or any other developed country. The British government seems to regard these sales by UK 'investors' as a compliment to the attractiveness of the British economy. To a jaundiced observer, this seems a little like selling your daughter and praising her pulchritude!

The nub of the matter

The UK now has a seriously unbalanced economy, more and more dependent upon foreign-owned banking and financial services industries that owe little loyalty to Britain. This dependence is compounded by encouraging the use of the UK financial markets as a 'flag of convenience' base for companies from countries, many of whose ethical and governance standards are dubious. London has become a sort of walled enclave for dubious fiscal practises, slightly funny money and some very funny people who threaten to skip to some other tax haven at the mere thought of making a legitimate contribution to the country whose facilities they enjoy.
So long as the UK is so dependent on consumer borrowing, housing and finance and so weak in science, technology and advanced manufacturing industries, so will the country be prey to bullying from industries that are akin to cuckoos in the nest.
Those who love Britain should recognise that Europe, with often superior business practises, more balanced economies, healthier attitudes to inequality and wholesome societies with good education, health and social inclusion is a far better prospect that the alternatives of dependence on foreign financiers or the United States.