Riots In The UK: Key Insights For Expats

The recent riots in the United Kingdom (UK), starting on July 30, 2024, are the most severe since 2011. They began after a tragic event on July 29 in Southport, where 17-year-old Axel Rudakubana stabbed three children at a workshop. Social media mistakenly identified Axel as a Muslim immigrant, which spread false rumours and increased anti-immigrant and anti-Muslim sentiments across the country.

Violence spread quickly to several cities, including Southport, Rotherham, Manchester, Liverpool, and Belfast, with riots breaking out in more than a dozen other places. What started as peaceful protests turned into violent clashes. Rioters attacked police, damaged property, and targeted buildings housing asylum seekers. Anti-immigrant groups like the English Defence League (EDL) took advantage of the chaos to promote their radical views. Over 400 people were arrested during the riots, which saw police cars set on fire and attacks on refugee homes. 

Nine days after the initial protests, tensions remain high in many cities. Clashes between anti-immigration protesters and counter-protesters have intensified, keeping police forces actively patrolling the streets. The riots reveal deep social divides over race, immigration, and national identity, suggesting a tense and unstable social environment that may lead to more conflicts between community groups.

Many people living in so-called advanced democracies assume that their freedom and material well-being are always secure. However, the "free world" has often lost sight of what true freedom means. To safeguard your freedom and wealth amid political and economic uncertainty, it's crucial to have a Plan-B. Obtaining a second passport, gaining permanent residency, and making offshore investments are effective strategies for ensuring your freedom and wealth.

Begin exploring your options by subscribing to our free newsletter today. I am here to help you create a personalized Plan-B that aligns with your priorities. Let’s delve into why having an exit strategy is essential, especially if you are in the UK.

SOCIAL MEDIA IS ON THE SPOT 

The recent riots in the UK have sparked heated debates on social media, especially on platforms like Telegram and X, about the spread of misinformation and the incitement of violence by anti-immigrant and extremist groups. This has pointed to social media as the main culprit for the riots.

Prime Minister Keir Starmer emphasized the difficulty in tackling the rapid spread of misinformation across social media, which heightened tensions and resulted in clashes with police and attacks on properties housing refugees.

Radical groups have been using platforms like Telegram to organize protests and spread anti-immigrant rhetoric. Although Telegram has made efforts to block some of this content, it is very debatable which of these contents are within the limits of free speech and which are not. 

On the other hand, X has been criticized for amplifying radical voices, enabling them to gain influence and sway public opinion. The questions regarding how platforms should manage these contents have sparked heated debates on freedom of speech. In response to the unrest, Telegram has begun blocking certain radical accounts and content promoting violence, signalling a shift in its approach to moderating extremist rhetoric.

Targeting specific people with false information to lynch them is clearly a crime and must be stopped. However, the issues that support anti-immigration rhetoric in the UK that Britons are discussing in their homes, on the streets or on social media are not simply the kind of issues that social media is meant to prevent. If Britons are looking for someone to blame for the challenges they face in their daily lives, such as the cost of living, unaffordable housing and poor-quality public services, then this goes beyond the social media debate.

However, it is expected that the debate on social media will also negatively impact the already high levels of public surveillance and police brutality in the UK. Dubbed an "omni-surveillance society," the UK holds over 3 million custody photos of individuals never charged, raising serious privacy concerns. The Investigatory Powers Act, known as the "snooper's charter," grants broad surveillance powers to authorities, with recent proposals pushing to expand these powers further, sparking fears of mass surveillance and diminished privacy rights.

Public trust in law enforcement is waning, especially following high-profile incidents like the murder of Sarah Everard by a serving police officer. These events have spotlighted systemic issues within the police force, such as a culture that permits misconduct and inadequate accountability. 

The widespread use of surveillance technologies has also raised ethical questions, with critics arguing that it could lead to more aggressive policing. There's a growing call for greater transparency and independent oversight in policing to restore community trust and balance public safety with civil liberties.

Racism and Islamophobia have surged, with targeted attacks on mosques and immigrant communities. Misinformation regarding the identity of the stabbing suspect further exacerbated these tensions, leading to violent outbreaks (Photo: Reuters)

IS THE REAL REASON BEHIND THE RIOTS THE UK'S STAGNATED ECONOMY?

The UK’s history has long struggled with hooliganism associated with football. At times, violent protests or looting have plagued the streets of the UK. If today's incidents relate to the violent outbursts of a limited number of groups, policing measures and harsh punishments can help to stop incidents quickly and prevent them from happening again for a long time. However, given the recent state of the UK economy and falling purchasing power, there are much bigger social problems behind the incidents. 

The UK is grappling with severe economic issues like rising inflation, job insecurity, and austerity measures. Government policies often leave individuals behind, fostering resentment and injustice, making them more susceptible to extremist ideologies. Racism and Islamophobia have surged, with targeted attacks on mosques and immigrant communities. Misinformation surrounding the identity of the stabbing suspect has further inflamed these tensions, leading to violent outbursts.

However, if the root cause of social unrest in the UK is at least two decades of economic stagnation, police measures will not be sufficient to address social unrest. One of the best indicators of a healthy economy is productivity-based wage growth. In this respect, the UK economy has been stagnant for close to 20 years. Real wage levels are still at 2007 levels, and wage increases largely reflect inflation adjustments. 

The Resolution Foundation estimates that productivity stagnation costs British workers $14,000 USD a year. The UK middle class is 20% poorer than its German peers and 9% poorer than its French peers. The UK's departure from the European Union does not seem to have had a positive impact on the UK economy yet. Unable to secure a favourable position on free trade agreements with the EU during Brexit, the UK continues to face many trade barriers. 

British workers' wage losses are not their only problem. At the same time, the UK's tax burden is the highest in 70 years. Despite the high tax burden, many Britons believe that public services are on the verge of collapse. Long waiting lists in the NHS, underfunded and understaffed social services, roads needing renovation, endless public transport breakdowns, and an education budget that never improves are among the main reasons for dissatisfaction with public services.    

In addition to low wages and poor public services, the lack of affordable housing and record-high rents exacerbate social unrest. Despite high house prices, the lack of deregulation of house building is another ominous prospect. The fact that the number of people using food banks has doubled in the last five years is a data point that cannot go unnoticed by politicians.

The lack of investment in the UK economy and the imbalance between sectors has long been a topic of debate. The chart below shows the ratio of sectors to GDP. One alarming aspect of the UK economy is that the financial sector has overtaken the manufacturing sector in productivity and contribution to GDP. According to 2022 data, the contribution of the financial sector to GDP is around 9%, while the contribution of the manufacturing sector is around 9%. The services sector, including the financial sector, accounts for about 72% of GDP. However, the ratio of the manufacturing sector to GDP in Germany is around 30%.

These figures may not be very meaningful on their own. It is only when the affordability problems faced by middle—and lower-income groups are taken into account that these figures can be interpreted as the consequences of the decline in productivity in the UK. High investments, profitability, and productivity in the financial sector provide significant profits for professionals working in this sector in London.

However, the lack of investment in the real sector hinders technological innovation in the country and encourages the emigration of the well-educated working population. Despite having some of the most important universities in the world, the UK struggles to retain its educated workforce and attract investment. Failing to attract high-value-added investment and labour, it is not surprising that the UK economy lags behind in productivity.

This economic data explains the discontent of lower- and middle-income groups, as a country cannot increase the purchasing power of the average person without high value-added investment and workers. Ordinary citizens' distrust of public services and public authorities is understandable in this respect, but their reaction is also misguided.

The UK has long been bogged down by burdensome regulations and bureaucracy, creating a hostile environment for productive capital. The government has artificially sustained traditional labour structures rather than fostering technological innovation (Photo: REUTERS)

ARE MIGRANTS THE PROBLEM?

Despite the xenophobia expressed in recent protests and the rapid increase in the number of immigrants to the UK over the last two decades, immigrants do not seem to be part of the economic problems. Given the UK's rapidly ageing population and the fact that new jobs are largely targeted at lower-income groups, immigrants are taking up jobs that are undesirable for Britons.

However, it is not possible to expect the public to rationally examine their economic circumstances and support long-term free market solutions. Anti-immigrants largely focus on immigrants' use of public services and low public investment, arguing that they would simply have a better life without immigrants. Moreover, since the UK's housing problem can partly be linked to immigrants, it is tempting to blame immigrants for high rents simultaneously.

The UK has long been plagued by high regulation and red tape that does not attract productive capital. It has artificially propped up existing labour structures rather than technological innovation. Since its inception, the UK has been indecisive about how to shape its economic relationship with the EU and has made major mistakes in monetary policy, keeping the pound artificially valuable. When it has had labour problems, it has filled the lowest-level jobs with immigrants while trapping most of its own citizens in stagnant sectors.

You're likely tired of being told you owe society just because you're more productive and successful. Remember, you don't have to endure this absurd rhetoric; numerous offshore investments can protect your freedom and wealth

WHAT TO DO NOW? LONG LIVE THE CBIs

Under these circumstances, blaming immigrants for Britons' problems is typical of the irrational social reaction we often encounter. The question most people ask in these circumstances is whether the UK can solve these deep and structural problems. Frankly, for me, this is the wrong question to ask. I do not believe in politicians or the wisdom of the masses. It is doubtful that the UK will even acknowledge its problems, let alone take the right steps to solve them.

Individuals should stop trying to fix factors they cannot control and devise an exit strategy. If you cannot change the macroeconomic and political conditions in which you live, consider investing, working, and living in a country that suits you.

You know that governments will ask you for more contributions, i.e. taxes, to keep the UK economy afloat, which will only worsen. You have often heard that you owe a debt to society simply for being more productive and earning more. You do not have to put up with this rhetoric. Many offshore investment opportunities know your value and will add value by protecting your freedom and wealth.

Citizenship by investment or residency by investment programs is among the most prominent of these opportunities. Many politically and economically stable countries make it possible to obtain citizenship or permanent residency by investing. You can take advantage of investment opportunities and tax benefits at the same time. You can easily access high-quality education and health services for you and your family, and most offshore investments are safe and secure.

Don't wait to be caught off guard by future crises—with my over two decades of experience, I'm ready to help you develop a Plan-B that safeguards your freedom and wealth

CONCLUSION

You don't want to be caught unprepared when another economic crisis, social unrest, collapse of public services, jeopardization of your retirement savings or any global catastrophe knocks on your door.

For more than two decades, I have been helping my clients develop their Plan-B and introducing them to countries and investment opportunities where they can live in peace and invest their wealth. Don't wait for another financial crisis, social unrest or astronomical tax increases to take action. I would be glad to help you and guide you in shaping your Plan-B with my team of experts and business partners.