Brexit has caused a £100bn-a-year loss in output, leaving Britain’s economy 4% smaller than it would have been inside the bloc, according to according to Bloomberg Economics.
Since officially leaving the European Union, three-years ago this week, UK-based investment has grown 19% less than the G7 average and the economy has forfeited 4% worth of growth, the analysis showed.
“Did the UK commit an act of economic self-harm when it voted to leave the EU in 2016? The evidence so far still suggests it did,” Bloomberg economists Ana Andrade and Dan Hanson, said.
“The main takeaway is that the rupture from the single market may have impacted the British economy faster than we, or most other forecasters, expected,” they added.
The underperformance is partly explained by business investment as firms put spending decisions on hold because of uncertainty about what life outside the EU would mean.
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Brexit also had a negative impact on the ability of companies to hire workers.
But prime minister Rishi Sunak insisted the UK made “huge strides” in harnessing the freedoms unlocked by Brexit to tackle generational challenges.
“And in my first 100 days as prime minister, that momentum hasn’t slowed – we’re cutting red tape for businesses, levelling up through our freeports, and designing our own, fairer farming system to protect the British countryside,” he said.
According to the polling expert John Curtice, on average polls now suggest that 57% people in the UK would vote to rejoin the EU.
Guy Hands, founder and chairman of private equity firm Terra Firma, said the only way Brexit could have worked was a “Liz Truss utopia” of complete deregulation and privatisation.
“It’s been a complete disaster. The reality is, it’s been a lose-lose situation for us and Europe,” Hands told BBC Radio 4’s Today programme. “The reality of Brexit was, it was just was a bunch of complete and total lies.”
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“The only way that the Brexit put forward by Boris Johnson was going to work was if there was a complete deregulation of the UK and we moved to a sort of Liz Truss utopia of a Singapore state and that was just never going to happen,” he added.
On January 31, 2020, the United Kingdom ended 47 years of belonging to the European Union and its predecessor, the EEC, soon after Boris Johnson won a resounding election victory for the Conservatives with his promise to “get Brexit done”.
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