Businesses, including CEOs and senior management, need to actively oppose populism – especially parties like Reform UK – and the immigration and Brexit policies they promote, as these approaches pose significant risks to the UK economy and business environment. Populist policies often impose restrictive immigration rules that limit the availability of skilled labour and create uncertainty in the labour market, thereby hindering innovation and growth. Brexit-driven populism, which advocates weakening or severing ties with the EU, disrupts supply chains, reduces market access, and increases regulatory burdens on firms reliant on EU trade and workforce mobility.
The case for rejoining the European Economic Area
One crucial step that businesses should support is lobbying the UK government to rejoin the European Economic Area (EEA) via membership in the European Free Trade Association (EFTA). This path would allow the UK to regain near-full access to the EU Single Market, enabling tariff-free trade, regulatory alignment, and labour mobility without the political complexity of full EU membership. Such economic integration is essential for competitiveness, attracting investment, and securing efficient supply chains, particularly benefiting sectors like financial services.
The financial services industry is particularly vulnerable to Brexit and populist policies because it heavily depends on seamless access to the EU Single Market. Many banks, insurance companies, and investment firms operate across multiple European countries, losing passporting rights and facing divergent regulations post-Brexit, which has increased compliance costs, restricted market access, and reduced competitiveness. Rejoining the EEA would restore these vital cross-border operating rights and regulatory alignment, which are essential for maintaining London’s status as a leading global financial centre.
Rejoining the European Economic Area (EEA) is vital for the UK to effectively address its growing debt issues and stimulate business growth and economic recovery. Membership would restore easier access to the EU single market, reducing trade barriers and regulatory uncertainty that currently restrict British businesses. This would help to increase exports, attract foreign investment, and foster innovation, ultimately boosting economic growth and government revenue. By fully participating in the EEA’s framework, the UK can benefit from closer economic cooperation, which would improve business confidence and competitiveness, thereby helping to create jobs and generating the economic momentum needed to manage and reduce national debt.
By uniting their voices, businesses can effectively pressure policymakers to adopt this pragmatic compromise. Restoring close economic ties with Europe would reduce trade barriers and regulatory uncertainty, promote growth and job creation, and strengthen investor confidence. This united business stance counters populist rhetoric, which often exploits economic anxieties, and offers a more stable and prosperous future for the UK economy.
Impact of Brexit and populism
The economic impacts of Brexit are well documented. An independent report by Cambridge Econometrics commissioned by City Hall reveals that London’s economy shrank by over £30 billion post-Brexit, with nearly 300,000 fewer jobs in the capital and almost two million fewer across the UK. Brexit has contributed significantly to the current cost-of-living crisis, increasing food prices and driving economic uncertainty. Businesses face rising operational costs, complex regulatory regimes, and disrupted supply chains.
Populism’s promotion of restrictive immigration policies only serves to further exacerbate labour shortages. For example, Reform UK’s proposals to abolish Indefinite Leave to Remain (ILR) and replace it with renewable work visas would reduce migrant workers’ rights, constraining access to vital talent pools and increasing operational risks for businesses. The UK Labour government’s May 2025 immigration white paper also tightens visa eligibility, by raising skill thresholds and excluding many medium-skilled roles, which threatens sectors such as healthcare, transport, and hospitality.
Populism harms businesses
Populism harms business because it tends to prioritise short-term political gains over long-term economic stability, creating uncertainty and instability for companies. For example, Nigel Farage’s Reform UK party advocates abolishing Indefinite Leave to Remain (ILR), replacing it with renewable work visas that restrict migrant rights and access to welfare. This policy would force hundreds of thousands of migrants already living in the UK to reapply for their status under tougher conditions, increasing workforce insecurity and potentially shrinking the talent pool available to businesses. Such restrictive immigration measures risk damaging sectors reliant on both skilled and unskilled migrant labour, increasing operational costs and limiting growth. Furthermore, the social tensions and political divisiveness fuelled by populist rhetoric can undermine consumer and investor confidence, destabilising the broader economic environment that businesses rely on to thrive.
Brexit introduced increased costs, delays, and complexities to UK supply chains. Reports show that 70% of UK firms have faced higher supply chain costs, with delivery times increasing by an average of 30%. This is especially damaging for industries reliant on just-in-time inventory systems, for example:
- Flint Global’s 2025 analysis highlights how right-wing and populist political shifts across Europe are increasing political and regulatory uncertainty for investors and businesses, disrupting the stable centrist consensus and raising risks and costs.
- Research from the London School of Economics outlines how populist governments emphasise nationalism and protectionism, which raises political uncertainty and makes multinational enterprises vulnerable. This rhetoric often targets migrant labour and foreign businesses, undermining the stable economic environment companies rely on to thrive.
- According to the World Bank, global trade has nearly flatlined due to rising populism. Enthusiasm for new trade agreements has fallen, and trade restrictions have surged, complicating supply chains, raising costs, and slowing investment.
Brexit continues to cause damage
Prominent business organisations, like the Confederation of British Industry (CBI) and BusinessEurope, publicly advocate for stronger UK-EU economic ties, emphasising the benefits of reducing trade barriers and improving regulatory alignment. Many UK entrepreneurs engaged in international trade recognise the EU as a vital partner and support policies facilitating easier access to the single market.
The UK Labour government’s refusal to break its 2024 manifesto commitment to rejoin the European Economic Area (EEA) or Single Market highlights a significant defiance against lingering Brexit orthodoxy for the sake of improving the UK’s struggling economy. Despite pressures and political complexities, this stance represents a vital opportunity to restore closer economic ties with Europe, which remains the UK’s largest trading partner and a key source of investment. For example, rejoining the EEA would restore benefits like seamless mobile roaming across Europe – something lost since Brexit – where UK consumers now face reintroduced roaming charges by major mobile networks, increasing costs and complicating travel for individuals and businesses alike.
Businesses need to call for closer relationships with the EU
Businesses need to rise and advocate strongly for this position because rejoining the EEA would reduce trade barriers, stabilise supply chains, and enhance market certainty – factors essential for sustained economic growth. By uniting their voices in support of re-engagement with the Single Market, businesses can influence policymakers to prioritise economic pragmatism over ideological divisions. This collective business pressure can help break the deadlock imposed by Brexit-related populism and demonstrate widespread demand for a more integrated and prosperous relationship with Europe, directly benefiting the UK’s economy and global standing.
Moreover, the geographic proximity of the UK to EU countries is a vital advantage for trade, reducing transportation costs and enabling rapid market response. Populist policies like Brexit undermine this natural advantage by complicating logistics, raising costs, and weakening competitiveness.
The UK Labour government’s pandering to populism, particularly by adopting similarly tough stances on immigration and crime as Nigel Farage’s Reform UK, is harmful to businesses. This approach risks normalising far-right rhetoric and policies that create uncertainty and restrict access to vital talent pools essential for economic growth. By focusing on populist issues to appease certain voter bases, Labour diverts attention from broader, progressive economic solutions needed to rebuild the UK economy post-Brexit. Such pandering undermines social cohesion and weakens investor confidence, creating a less stable environment for businesses to thrive. Ultimately, this drift towards populism threatens to erode principles of sound economic management and inclusive growth that businesses rely on, making it crucial for politicians and business leaders to resist this trend and advocate for pragmatic, long-term policies.
National infrastructure, security concerns and Corporate social responsibility
Beyond economics and immigration, there is increasing consensus across political lines for the renationalisation of critical national infrastructure such as energy, water, transport, and communications. Years of privatisation have exposed these essential sectors to foreign ownership and operational failures, posing risks to national security and public welfare. Renationalisation aims to enhance security, reduce costs by eliminating profit margins, and improve accountability. This move is seen as vital in strengthening the UK’s resilience against geopolitical and cyber threats.
Businesses have a responsibility to support their local communities, which strengthens customer trust and brand loyalty. Major UK companies, such as Tesco, actively engage in local charity support and community projects. Such corporate social responsibility efforts not only improve community well-being but also contribute to the long-term sustainability of their businesses by enhancing employee satisfaction and consumer goodwill.
The media has a role to play as well
The media’s disproportionate coverage of Reform UK – a party closely linked to populist and hardline Brexit stances – only serves to amplify divisive narratives that can undermine rational policy discussion and democratic debate. Such exposure boosts Reform UK’s profile beyond its actual electoral support, influencing public opinion in ways that may harm economic stability. However, it is important to recognise that a Reform UK government is not inevitable, as widespread voter uncertainty and the potential need for coalition governments remain significant factors. It is essential for businesses to oppose damaging populism, advocate for rational policies, and lobby for close relations with Europe by rejoining the EEA through EFTA membership to safeguard the UK’s economic future, and in the long term by rejoining the EU.
Sharing the message is vital
In a nutshell, populism creates economic uncertainty, disrupts trade and labour markets, and damages business growth prospects. Brexit has negatively affected lending, exports, and supply chains, through disadvantaging UK firms.
Sharing this message is vital to raise awareness of these economic stakes and encourage informed, proactive leadership. It is equally important for individuals and businesses to contact their local Member of Parliament to express concerns and advocate for policies that support economic stability and growth. The future of the UK economy could be seriously jeopardised if these issues are not addressed urgently through combined leadership and political engagement.
This article was created with the help of AI to assist the author in overcoming dyslexia-related problems.
