Ten years after Britain voted to leave the European Union, business leaders who were on opposite sides of the 2016 referendum say Brexit has fallen short of what was promised. While some still back the decision, they say the gains have been slow and the costs to trade, investment and jobs have been significant.
Supporters of Brexit had said leaving the EU would help Britain regain control over its laws and borders and unlock stronger economic growth. Instead, Britain has faced weak growth, high taxes, strained public services and continued migrant crossings on the English Channel coast, leaving many dissatisfied with the outcome.
Simon Boyd, managing director of REIDSteel, which makes prefabricated steel structures on England’s south coast and exports them to places including Ghana and Barbados, said Brexit had not matched what was promised. No, it’s not delivered everything that was said it would deliver on the tin, but it is delivering,
he told The Associated Press. It’s very sluggish. You only need to look at the statistics to see that.
Boyd, who still supports Brexit, blamed the poor results on politicians whom he said were not committed to delivering it. He also pointed to unexpected challenges over the past decade, including the COVID-19 pandemic and the wars in Ukraine and the Middle East.
Economists, however, say the problems are deeper. Creon Butler, who leads the global economy and finance programme at Chatham House, said leaving the European single market had lasting consequences. Whatever was promised, whatever one hoped for, you have to accept that it has been a major loss of wealth and prosperity for us through the choice we made to leave,
he said. That’s a decision the British public have made, and they’re entitled to make it, but it does make us poorer.
A recent report by the National Bureau of Economic Research said Brexit had reduced Britain’s gross domestic product by 6 per cent to 8 per cent, investment by 12 per cent to 13 per cent and productivity by 3 per cent to 4 per cent.
Britain’s carmakers had been among the most vocal opponents of Brexit, warning that extra paperwork and checks on parts and finished vehicles would hurt an industry built on closely linked factories across Europe. Mike Hawes, head of the Society of Motor Manufacturers and Traders, said the industry had adapted, but at a price. We have been able to move with the times, so to speak, but undoubtedly it’s putting us at more cost into the industry, more pressure,
he said. Industry leaders say these pressures have reduced investment because international manufacturers no longer see Britain as an easy route into the European market.
Britain has since signed dozens of trade deals with countries including Australia, India and the United States, a goal often highlighted by Brexit supporters. Even so, EU countries still account for 41 per cent of Britain’s exports and half its imports, according to the latest government figures. Businesses have also had to cope with the loss of easy access to European labour after free movement ended.
That change has hit some sectors hard, including Britain’s curry restaurants. Owners say many Eastern European workers left rather than deal with tougher visa rules, and promised extra visas for South Asian cooks did not materialise. We feel betrayed,
said Oli Khan, president of the Bangladesh Caterers Association UK, who runs a restaurant in Stevenage, north of London.
Prime Minister Keir Starmer has begun talks with the EU to rebuild a closer relationship in an effort to support Britain’s stagnant economy. His move comes as a survey by Ipsos, the Policy Institute at King’s College London and UK in a Changing Europe suggested frustration with Brexit is rising. The poll of 2,245 adults in May found 48 per cent said Brexit was going worse than they expected, up from 28 per cent in March 2021. Nine per cent said it was going better than expected, while about one in three said it was going as expected.
Boyd said the most important verdict remained the referendum itself, when 51.9 per cent of voters, or 17.4 million people, backed leaving the EU. He said Brexit had not delivered because politicians, large corporations and other established interests had blocked the will of the people, leaving Britain too closely tied to the EU. He added that there should be no return, saying: Imagine if we were to rejoin … today. The conditions upon which we would be allowed back in would be akin to us re-boarding the Titanic on the condition that we surrender our life vests first. Need I say any more?
A decade on, Brexit remains a source of frustration for critics and supporters alike, even as some continue to argue that Britain’s future lies outside the EU.
With PTI Inputs
– Ends
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