A new Report shows Brexit reset can save economy, has been published revealing that the UK’s economy could be boosted by 2.2 per cent just by more deeply aligning with the EU. Report shows how Starmer’s Brexit reset can save economic plan but only with EU goodwill.
Report shows Brexit reset can save economy
The report by Frontier Economics was commissioned by Best for Britain and is understood to reflect the UK government’s own estimates of what can be achieved with the Brexit reset talks which began officially last week.
With Britain teetering on a recession, the boost could put Sir Keir Starmer and Rachel Reeves’ drive for economic growth back on track. Chief negotiator Nick Thomas-Symonds hopes a deal can be struck in three months.
The prime minister hopes that his offer of UK support in defence and security working more closely with European allies, along with a campaign of wooing EU leaders with dinners in Downing Street will persuade them to take a more pragmatic approach to trade.
The UK government can secure significant growth
The study found that the UK government can secure significant growth (1.7 per cent to 2.2 per cent) through a policy of deep alignment in both goods and services with the EU while alignment on goods alone can also drive growth (1 per cent to 1.5 per cent).
Deep alignment is a mutual acknowledgement of each other’s standards rather than adopting exactly the same rules.
Significantly, alignment on goods offers disproportionate economic dividends for areas outside London with the largest growth in this scenario projected in the West Midlands, East Midlands, North East and Yorkshire.
In monetary terms, alignment delivers similar growth in exports for the EU (£23.9bn) as for the UK (£26.52bn). In the scenario of Donald Trump’s US tariffs being applied, deep alignment between the EU and UK shields the EU by offsetting some of the lost US trade with friction-free UK trade.