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The price of Brexit: How much is leaving the EU costing UK businesses?

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The price of Brexit: How much is leaving the EU costing UK businesses?

The UK is paying a heavy financial price for Brexit, with new data revealing a significant blow to trade with the European Union. As a result, the government has announced plans to eliminate obstacles hampering trade in an effort to mitigate the economic damage.
As per recent figures—official estimates show that Brexit is costing UK businesses £37 billion annually due to reduced trade with the EU, according to report by UK newspaper Independent. According to data presented by UK trade minister Douglas Alexander, UK-EU trade for the period ending September last year was 5 per cent lower than in 2018, when adjusted for inflation and excluding precious metals. This figure comes from calculations by the House of Commons library.
Alexander put the blame on the previous Conservative government’s Brexit agreement for the substantial losses, declaring that it is “clear [the agreement] is not working well enough.” He outlined the Labour government’s commitment to rebuilding economic ties with the EU and removing unnecessary trade barriers to stimulate growth.
The financial loss was highlighted during a parliamentary question from SNP MP Stephen Gethins, who described it as “an appalling loss of trade at a time when business and the Exchequer can ill afford it.” Gethins criticized the government’s ongoing adherence to a “hard Tory Brexit,” arguing that it worsens economic conditions while imposing cuts that harm the most vulnerable. “A hard Brexit makes us poorer and less secure,” Gethins warned. “The government must stop punching down on the most vulnerable to balance the books and join the customs union and single market at the very least.”
The burden of post-Brexit bureaucracy has also been substantial. The Independent recently reported that Brexit-related paperwork is so extensive it could circle the globe 15 times. David Henig, from the European Centre for International Political Economy, directly linked the trade decline to Brexit and urged the government to address regulatory differences that are causing friction.
Mike Galsworthy of European Movement UK questioned the rationale for excluding the single market, customs union, and free movement, arguing these were not mandated by the 2016 referendum. Meanwhile, Tom Brufatto from Best for Britain suggested that closer alignment with the EU could increase the UK economy by 2.2 per cent, and called for policies to reduce trade friction ahead of the upcoming UK-EU summit in May.





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