We store cookies on your device to make sure we give you the best experience on this website. I'm fine with this - Turn cookies off
Switch to an accessible version of this website which is easier to read. (requires cookies)

Behind at half-time

April 27, 2022 3:42 PM

12ddApart from going round leaving stroppy notes on civil servant desks when they are working from home we have yet to hear much from Jacob Rees-Mogg in his role as Brexit opportunities minister.

Two reports issued in the past few days suggest he will have his work cut out if he is to repair even some of the damage inflicted on the British economy by the incompetent way in which the government has implemented the referendum decision to leave the EU

Firstly economists from the LSE Centre for Economic Performance, have reported that Brexit red tape means the UK has "stopped selling" many products to smaller EU countries as they have been hit by red tape and costs at the border, with the biggest problems in trade with firms in smaller EU countries, the research has found. For more see One in five UK small businesses have halted EU exports, accountants say | Financial News (lse.co.uk)

The results back up forecasts from the independent Office for Budget Responsibility (OBR) that has warned that UK trade has "missed out" on much of the post-Covid recovery in global trade enjoyed by other G7 economies. It has estimated that total UK imports and exports will be 15 per cent lower over the medium term than if Britain had remained part of the EU.

Secondly economists at the renowned London School of Economics have found Brexit has caused a six per cent increase in Britain's food prices with greater trade barriers on imports from the bloc having a "clear and robust" impact on food prices.

Grocery bills have risen most sharply for food products more reliant on imports from the EU , such as fresh pork, tomatoes and jams were more affected. You can read more here UKICE-Supply-Chains-Report_Final.pdf (ukandeu.ac.uk)

Nikhil Datta, LSE researcher, said the findings showed "a clear and robust impact of Brexit-induced trade frictions increasing food prices for UK consumers during a time when the economy is already facing inflationary pressures from global sources".

The government chose not just to leave the EU but also the single market ( countries such as Norway and Switzerland are not in the EU but have chosen to join the single market). The Conservatives negotiated a deal which necessitates all the extra bureaucracy which cuts our prosperity as we sell more abroad whilst unnecessarily increases prices at a time inflation is running wild and living standards are being hit

We do hope Jacob has some major wheezes up his sleeve to combat these failures of policy. At the present we are losing significant economic benefit from our decisions on the single market