Repairing the economic damage of Brexit should be the top priority for Andy Burnham as he reconsiders Labour’s red lines on EU membership, according to Shevaun Haviland, the director general of the British Chambers of Commerce (BCC).
Current Trading Relationship
Haviland welcomed the prime minister's decision to revisit the Brexit negotiations, despite the uncertainty it may create. She argued that the UK’s current trading relationship with the EU is detrimental to business.
““We do think it’s right, because of what we know from the evidence of how businesses feel it’s not working,” she stated.
Economic Impact of Brexit
Highlighting the ongoing economic repercussions of Brexit, Haviland noted that more than half of the bosses surveyed by the BCC believe the deal negotiated by Boris Johnson’s government and enacted in 2021 is not beneficial.
““We expected it to be very difficult at the beginning, when [companies] were getting used to the new rules, and then it would sort of get easier as it went along. But actually, that has not happened,” she explained.
Economists estimate the cost to the UK economy has reached up to £240 billion so far, with national income per head between 6% and 8% lower than it would have been had the UK not left the EU. The Office for Budget Responsibility estimates a long-term hit of about 4% of gross domestic product.
Labour's Conference Remarks
At Labour’s conference in Liverpool last month, Burnham stated that Brexit had done “more harm than good” and pledged to reassess Britain’s relationship with the EU. He opened the door to options including fully rejoining the bloc, asserting that failing to pursue a better deal with the EU would be a “major dereliction of duty.”
