Simon Boyd’s firm, located on England’s south coast, produces prefabricated steel structures shipped worldwide, including destinations like Ghana and Barbados. Mike Hawes, leading Britain’s carmakers as head of the Society of Motor Manufacturers and Traders, stood on opposite sides of the Brexit debate in 2016. However, after a decade, both express frustration with Brexit’s consequences.
A decade ago, Brexit enthusiasts envisioned a prosperous future for Britain, free from EU regulations, claiming regaining control over laws, borders, and economic growth. Nevertheless, the post-Brexit reality fell short of these expectations. Britain struggles with limited access to the EU’s extensive market, encompassing 27 nations and 450 million people.
Today, economic growth in Britain is sluggish, taxes are high, public services are under strain, and migration continues via the English Channel. Reflecting on the situation, Boyd told The Associated Press, “No, it’s not delivered everything that was said it would deliver on the tin, but it is delivering. It’s very sluggish. You only need to look at the statistics to see that.”
Boyd, managing director of REIDSteel in Christchurch, England, remains supportive of Brexit but attributes unsatisfactory results to political leaders lacking commitment. Challenges such as the COVID-19 pandemic and conflicts in Ukraine and the Middle East have further complicated Brexit’s impact.
Economists identify fundamental issues
The Brexit vote increased business costs owing to prolonged negotiations on the UK’s future with the EU. After officially leaving the bloc on January 31, 2020, new trade regulations made business with European partners costlier and more time-consuming.
Creon Butler, head of the global economy and finance program at Chatham House, highlighted long-term ramifications of exiting the European single market. Butler stated, “Whatever was promised, whatever one hoped for, (you have) to accept that it has been a major loss of wealth and prosperity for us through the choice we made to leave.”
A report by the National Bureau of Economic Research in Massachusetts underscores Brexit’s adverse impact, reducing Britain’s GDP by 6% to 8%, investment by 12% to 13%, and productivity by 3% to 4%.
Carmakers faced significant challenges
Opponents of Brexit, especially car manufacturers, warned that increased regulatory burdens would hamper an industry reliant on interconnected European factories. Concerns about international carmakers investing in the UK persisted due to reduced appeal as a gateway to the European market.
Hawes remarked that international trade agreements have somewhat alleviated industry pressure. “We have been able to move with the times, so to speak, but undoubtedly it’s putting us at more cost into the industry, more pressure,” he said.
Despite new trade deals with countries like Australia, India, and the United States, EU nations still account for 41% of British exports and half its imports, according to recent government data.
The workforce impact on British businesses
During 50 years in the EU, British businesses benefited from cheap labor, especially post-2004 expansion. This workforce source dried up after Brexit ended free movement within the bloc.
For example, Britain’s curry restaurants, facing labor shortages, were particularly affected. The Bangladesh Caterers Association UK’s president, Oli Khan, voiced discontent over unmet promises for more visas for South Asian chefs, impacting his restaurant in Stevenage.
Prime Minister Keir Starmer initiated discussions with the EU to address Brexit-related challenges but announced his resignation. Polls show growing frustration with Brexit, with a survey indicating 48% view Brexit’s outcomes as worse than anticipated.
Boyd asserts the significance of the 2016 vote, where 51.9% supported leaving the EU. He maintains that Britain’s potential remains untapped due to political interference.
Reflecting on rejoining the EU, he argued, “Imagine if we were to rejoin… today. The conditions upon which we would be allowed back in would be akin to us re-boarding the Titanic on the condition that we surrender our life vests first.”