Brexit (Image: Getty)
Labour’s determination to drag Britain closer to the EU could harm the country’s chances of strong economic growth, a new report warns. Britain should instead make the most of its Brexit “freedoms”, to transform the economy.
And contrary to public opinion, the UK’s economy has kept track or outpaced our European neighbours since we left the bloc six years ago. Sir Keir Starmer has repeatedly been accused of trying to “reverse” Brexit since becoming Prime Minister in 2024. But a devastating new report from the Centre for Policy Studies argues that an EU reset risks becoming “at best a substitute for a credible growth strategy, and at worst an obstacle to delivering one”.
Leading economist Dr Gerard Lyons says that the issues that are holding back our economic growth are unrelated to the decision to leave the EU.
The UK economy has grown by 12.1% since the 2016 referendum and by 5.3% since we left the EU, outpacing all three of our European G7 competitors – France, Germany and Italy). He says weaker GDP per capita is largely because of our inability to execute pro-growth policies and has not been helped by record-breaking net migration figures, both of which are within the control of politicians in Westminster, not Brussels.
The report also argues that renewed closeness with the EU would be saddling Britain to a slow growth region.
Although it is still important, the EU’s share of the global economy is declining, down from 15.5% in 2016 to 14.0% in 2025, and will continue to do so over the coming years.
One of the many trade-offs involved in a closer relationship with the EU would be to limit our ability to strike new trade deals with countries in the fastest-growing regions of the world.
Dr Lyons said: “Westminster cannot pass the buck to Brussels again. It needs to accept the responsibility and opportunity to deliver a pro-growth policy agenda.
“Leaving the EU was an economic shock that had a temporary, not permanent impact on growth.
“It makes sense to have a sensible relationship with the EU, but we should not tie our hands and refuse to use the post-Brexit levers that can impact our regulatory, trade and growth policies.
“The last decade has demonstrated that it was not just leaving the EU but the policies we adopted since we left that are key. Brexit changed the UK’s economic framework and our domestic policy choices have heavily impacted the outcome. The UK should use the freedoms available to it to deliver stronger growth and higher living standards, with Westminster focused on implementing a pro-growth strategy.”
