Independent group says Britain will be better off out

A survey has found that Britain would be far better off outside the EU.

As part of its Europe 2016 Wealth Report, an independent South Africa-based group called New World Wealth examined the impact of Brexit on individual wealth and wealth creation in the UK and found that the UK will benefit from Brexit. There were several points that led the group to this conclusion.

The UK would have a hard border like Australia and therefore it would be able to restrict immigration. High immigration levels bring down average wages due to demand and supply dynamic which in turn brings down average wealth per person (wealth per capita). Uncontrolled immigration can also put pressure on healthcare and social security systems. In addition, over the longer term, a UK free from EU shackles will result in greater ties with former English-speaking colonies such as Canada, USA, Australia, India and New Zealand, all of which have much stronger economies than EU countries. The UK is the only English speaking country in the region, which is a major advantage when dealing with these countries.

New World Wealth found that the UK would be free from EU regulations which restrict growth of the UK’s financial services, hi-tech and manufacturing sectors. Brexit would also allow Britain to bring down taxes and therefore encourage business formation. And finally, the UK is the only English speaking country in the region, which makes it a magnet for unskilled immigrants from third-world countries. This is because very few unskilled immigrants know French, Italian, German, Spanish or other European languages. However, most of them know English.

The group considered the Australian model. Australia has adopted a restrictive immigration policy over the past 15 to 20 years. It keeps its population relatively small and only admits skilled migrants, based on a points system. As a result, Australia’s average wealth per person has gone up by 250% from US$59,000 (£41,000) in 2000 to US$204,000 (£144,000) in 2015. Over the same period, the UK’s average wealth per person has gone up by only 58% from US$93,000 (£66,000) in 2000 to US$147,000 (£104,000) in 2015. Specifically, Brexit would likely result in:

  • Britain re-introducing 2 year working visas for citizens from Canada, Australia and New Zealand. Plus USA may also be added.
  • Stronger alliances with Australia, USA, Canada, New Zealand, India and China.
  • Weaker alliances with EU countries and the Middle East.

A spokesman for New World Wealth said: “The average UK citizen is currently worth US$147,000 (£104,000). We expect this figure to rise to around US$180,000 (£127,000) by 2020 if Brexit goes ahead. “If the UK stays in the EU, we expect this figure to decline to around US$140,000 (£99,000) by 2020.”

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