iT is approaching five years since the UK officially left the EU. And what do we have to show for it? The Tories admitted they took Britain out of the EU without a growth plan, and the consequences are clear: the cost of living is rising, public services are on their knees, and growth is a long way off. Feels like a dream. Although some may not like to hear it, a closer relationship with the EU is an important piece in solving this growth puzzle.
For too long, Westminster has avoided the subject. Any politician, business leader, or journalist brave enough to admit that Brexit has damaged the UK economy has been accused of relegating the past. But, whisper – times are changing.
Labor has made growth its central mission, and has made it clear that a closer relationship with Britain is part of that vision. In November last year, Bank of England Governor Andrew Bailey rightly pointed out that Brexit had weighed on the UK’s ability to trade. Even the leader of the Conservative Party, arch-Brexitaire Cammy Badenoch, has admitted that his party took the UK out of the EU without a growth plan. Is politics finally suffering from economic reality?
That seems to be the public sentiment. Last year, immediately after Donald Trump’s November election victory. Later, the Good Growth Foundation think tank found that the post-Brexit Britain is not as hostile as some might assume. In a direct choice between closer ties to Europe or the US, the public strongly chose Europe.
Almost 60% think Europe is more important in terms of trade and economy. A lot has happened since 2016: the pandemic, the cost crisis, and Russia’s war in Ukraine, to name but a few world-changing events. Britain’s closest trading partner now feels more important than ever.
But we cannot repeat the mistakes of the past, where EU membership was distant and disconnected from people’s lives.
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Our first report next week shows that people don’t just want development for its own sake. They want growth that feels tangible and offers fundamental improvements in their daily lives.
Closer UK-EU relations must place the highest value on people: lower housing costs, better public services, better skills and training, and more opportunities. Now it is up to those of us who believe in the benefits of closer economic ties to map out what might be possible. wants
If we are serious about fixing our economic stagnation, the EU cannot be taken away. The issue has always been a political one at its heart. Provided it delivers on people’s preferences, there is a path towards a closer relationship with the EU that is not electrifyingly destructive – in fact, possibly quite the opposite.
Parful Nargund is the Director of Good Growth Foundation
