Only a ‘people’s vote’ can save the Tories now

Brexit is, as we know, the most important issue facing the government and the country. Except it isn’t. For the Conservatives there is an even more pressing matter: how to prevent a socialist government. Yesterday, the pound plunged after ministerial resignations following Theresa May’s deal with EU negotiators. But were investors spooked by the thought of a ‘no deal’ Brexit or by the possibility of a government collapse, general election and Corbyn in Number 10? Who knows? One thing is for certain: the very worst outcome for markets would be a combination of the two, a Red Brexit. At least the EU would temper Corbyn’s ambition to turn Britain into Venezuela, through its rules on state funding of industry and so on. Outside the EU, on the other hand, Corbyn could rapidly turn Britain into a command economy, with the grave consequences that would bring.  Meanwhile, Corbyn would be trying to fund a huge rise in public spending with falling revenues, as higher personal and corporate taxes drove wealthy individuals and businesses abroad.