The Office for Budget Responsibility (OBR) has reported that Brexit is set to reduce UK trade by 15%.
OBR’s prediction on UK trade
The OBR stated that “weak growth in imports and exports over the medium term partly reflects the continuing impact of Brexit.” It expects that Brexit will reduce the UK’s trade intensity by 15% in the long term.
Starmer’s stance on the single market
Despite this forecast, Prime Minister Sir Keir Starmer has said that his government will not rejoin the EU single market. However, he has pledged to strengthen ties with the EU. Earlier this month, Starmer said, “Better co-operation with the EU will deliver the benefits the British people deserve – securing our borders, keeping us safe and boosting economic growth.”
Reactions from politicians and experts
SNP MP Stephen Gethins commented to The Independent, “At a time when the chancellor talks about deficits, the OBR’s figures show the harsh impact of Brexit. It has been devastating for our businesses, public sector, and overall economy. Reversing a hard Tory Brexit would be the single most effective step the chancellor could take to boost growth and the Treasury’s finances.”
Dr Mike Galsworthy, chair of European Movement UK, echoed these concerns. “These OBR figures confirm what we already knew – Brexit does not work for working people,” he said. “Red tape is severely affecting our economy, particularly UK businesses reliant on EU supply chains. The government must build on their reset with Europe to deliver long-term stability for UK businesses.”
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