Key facts
- Over half of UK businesses surveyed find the current post-Brexit trade deal unhelpful.
- Economists estimate Brexit has cost the UK economy up to £240 billion.
- The Office for Budget Responsibility forecasts a long-term hit of about 4% of GDP.
- The British Chambers of Commerce will consult its 50,000 members on options for Britain's EU relationship.
Repairing the economic damage of Brexit should be the top priority for Andy Burnham as he reconsiders Labour’s red lines on EU membership, the head of one of Britain’s leading business groups has said. Shevaun Haviland, the director general of the British Chambers of Commerce (BCC), welcomed the government reopening Brexit discussions, arguing that the UK’s current trading relationship with the EU is detrimental to businesses.
Haviland stated that more than half of bosses surveyed by the BCC believed the deal negotiated by Boris Johnson’s government and enacted in 2021 was not helping them, contrary to initial expectations that businesses would adapt over time. Economists estimate the cost to the UK economy has reached up to £240 billion, with national income per head 6% to 8% lower than it would have been without Brexit. The Office for Budget Responsibility projects a long-term hit of approximately 4% of gross domestic product.
Burnham, the UK Labour politician, has previously stated that Brexit has caused 'more harm than good' and has opened the door to options including rejoining the EU. Haviland emphasized that the BCC, representing over 50,000 members employing more than 6 million people, will consult its members on various relationship options with the EU, framing the issue as economic rather than political. She also urged Chancellor John Healey to implement measures in the upcoming budget to support businesses, such as reducing energy bills, business rates, and employment taxes.