If you sell anything made in the UK to any of these countries, your product or service just got a lot more competitive. In fact, the cheap pound should also be a great opportunity for British companies to expand their share of global trade. But for a devaluation to work, which is essentially what we just saw, it has to be handled the right way. The US, Canada and Australia are already among our strongest export markets, and China, regardless of current geopolitical tensions, is still the single economy in the world with the greatest potential. Jacob Rees-Mogg, the new Business Secretary, should offer extra funding to exporters securing new orders, as well as instructing banks to make loans available to small companies selling overseas for the first time, and James Cleverly, the new Secretary of State, should order British ambassadors and envoys to open every possible door for our business. With a little extra effort, we could significantly increase exports. Kemi Badendoch, the ultra-bright new trade minister, should push for as many new trade deals as possible, as well as expanding existing ones. With lower tariffs and easier access, the UK could gain a bigger share in many markets. A trade deal with the US may still be out of reach, but there are many others that could be sewn up and many more that could delve specifically into services. Imports should be replaced by domestic production as much as possible. We’ve made a good start (finally!) by approving fracking and restarting oil and gas production in the North Sea. It was scandalous that we cut so much, especially as imported energy is paid for in expensive dollars, but we can finally start to fix that (and even start exporting natural gas – apparently there is enough of a market right now). Nor does it stop there. We could make more cars in this country, especially lower-priced electric models, as well as more chemicals, electronics and clothing. With imported things more expensive than ever there has never been a better time. Finally, and just as important as increasing exports, we should offer some protection to our leading companies. There is a real risk of a wave of overseas takeovers, especially by giant US private equity firms looking for opportunities to cash in on an ever-stronger dollar. A deal that looked attractive at $1.30 will look irresistible at $1.15 if you’re sitting in New York or Boston. We don’t want to ban acquisitions entirely, and some are inevitable, but it doesn’t hurt to put a few more obstacles in the way of any acquisition. In fact, many UK exports are incredibly cheap at the moment, especially to the US, the Far East and much of the developing world. A devaluation, managed in the right way, can be a key ingredient in rebuilding an economy, even if it is often fraught with risk. There is nothing the government can do to boost the currency anyway, so we might as well make the most of it and use it as an opportunity to grow our export industries. If we do, when the pound eventually recovers, as it surely will in time, the British economy will be in a much stronger position than it is now.
