Sir Keir Starmer’s decision regarding the UK’s relationship with the EU post-Brexit may have a significant impact on the country’s economic growth and living standards. According to a recent report by the Resolution Foundation, Sir Keir’s stance on ruling out a return to the single market and customs union is limiting the potential growth dividends for the UK.
The report highlighted that rejoining the single market could boost GDP by around 3.5 per cent compared to the current EU trade deal. The Resolution Foundation called for a new “pro-growth” relationship with the EU, emphasizing the need for a strategic approach to closer alignment with Europe.
While the report acknowledged some positive steps taken by the UK and the EU in areas such as professional qualifications and veterinary standards, it stressed the importance of a more ambitious strategy moving forward. The Resolution Foundation’s principal economist, Sophie Hale, emphasized the need for a strategic focus on high-value manufacturing sectors like chemicals and vehicles, which have been significantly affected by Brexit.
Sir Keir Starmer recently visited Brussels to improve relations with the EU, signaling a desire to move past the “Brexit years” and establish a closer partnership with the bloc. While specific details of any potential policy changes were not disclosed, discussions around a youth mobility scheme and access to British fishing waters were hinted at.
Campaign group Best for Britain supported the Resolution Foundation’s call for beneficial regulatory alignment with the EU to facilitate economic growth. The group’s Director of Policy, Tom Brufatto, highlighted the importance of ongoing meetings between the UK government and the EU Commission to enhance trading and cultural relations.
As the UK navigates its post-Brexit landscape, the decisions made regarding the country’s relationship with the EU will play a crucial role in shaping its economic future. Strategic alignment with the EU in key sectors and a focus on maximizing growth dividends could be vital in ensuring long-term prosperity for the UK.
