Brexit has undoubtedly had a significant impact on the UK, bringing about a range of economic, logistical, and social challenges that have led many to reconsider the decision to leave the EU. These challenges have affected both businesses and individuals. Below are some of the key negative consequences of Brexit that many argue could be mitigated by rejoining the EU’s Single Market and Customs Union.
Part one of this article was published 10 May, you can find it here.
Trouble at the Irish border
The introduction of customs checks between Northern Ireland and the Republic of Ireland has created a logistical and political nightmare, risking the fragile peace established by the Good Friday Agreement. While the Common Travel Area (CTA) ensures that people can still move freely between Northern Ireland and the Republic of Ireland, the imposition of customs checks for goods has led to disruptions in cross-border trade.
. The increased regulatory divergence between Northern Ireland and the Republic of Ireland is a significant source of tension, introducing unnecessary complexity and making it more difficult for businesses to operate efficiently across the border. The situation remains a key challenge in the post-Brexit UK-Ireland relationship.
Business disruptions and relocations
Many UK businesses, particularly those that relied on free trade with the EU, have been forced to relocate operations or adjust their supply chains to avoid the increased bureaucracy and higher costs imposed by Brexit. Small businesses, in particular, have struggled with the extra red tape.
Queues, delays, red tape and bureaucracy
A recent study shows that the negative impact of EU-UK Trade and Cooperation Agreement (TCA) has increased over time. The TCA introduced a significant amount of red tape in the form of customs checks, VAT complications, and regulatory hurdles that complicate business operations, especially for industries like agriculture, logistics, and technology.
At the same time, an LSE report blamesthe introduction of post-Brexit customs checks at UK ports for a significant portion of food price increases. The checks mean significant delays in both import and export operations, disrupting the logistics sector and contributing to supply chain bottlenecks, especially at major ports like Dover.
Economic downturn and bad trade deals
The UK economy has faced a downturn, with GDP growth slowing since Brexit. Reduced trade volumes with the EU and successive governments’ failure to secure satisfactory trade deals with other countries have left the UK struggling to find new economic opportunities.
Loss of free movement rights
One of the most immediate consequences of Brexit was the loss of the free movement of people between the UK and the EU. UK citizens no longer have the right to live, work, or travel freely across EU countries, creating significant barriers for professionals, students, and their families.
Impact on services sector
The EU-UK trade deal excludes many service industries – one of the UK’s largest economic sectors – from the benefits of free trade. This exclusion has led to uncertainty and disruption in industries such as finance, law, and technology.
End of guaranteed free mobile roaming
Since leaving the EU, UK mobile users have lost the ’Roam Like at Home‘ protections, leading to the reintroduction of roaming charges when travelling in Europe. This has resulted in unexpected costs and confusion for millions of UK citizens, particularly on the Kent Coast, where roaming charges affect people whose phones connect to a French mobile network. This issue largely depends on the mobile network provider, as companies like EE, Three UK, Vodafone UK, and Sky Mobile have reinstated EU roaming fees. However, all UK mobile networks still retain free roaming in the Republic of Ireland, so users travelling there are not affected by additional charges.
Why Labour holds the line on Brexit – despite evidence of U-turns elsewhere
Despite the economic and logistical challenges post-Brexit, the Labour government continues to prioritise strategic partnerships with Europe and has stopped short of fully rejoining the EU’s most significant economic structures.
Labour’s refusal to rejoin the Single Market or Customs Union appears politically calculated. The leadership is likely attempting to avoid reopening Brexit-related divisions or being seen as reversing a democratic decision. However, this caution contrasts sharply with their other policy reversals, which include:
Renationalisation
Labour initially committed to renationalising essential utilities, including energy, water, and Royal Mail services. However, these plans have been largely abandoned or significantly watered down, with the party focusing instead on more incremental reforms.
Green investment
Labour’s ambitious £28 billion annual commitment to green investments to support the transition to a low-carbon economy has been significantly reduced to £4.7 billion per year due to economic pressures.
House of Lords reform
The plan to abolish the House of Lords and replace it with a more democratic system has been shelved and the government is now looking into a weaker compromise, likely due to political opposition and the need to prioritise other reforms.
Other U-turns
Several other major manifesto policies, such as reforms in education, health care, and taxation, have been softened, delayed, or dropped entirely as the new Labour government adapts to economic conditions and public opinion.
This consistent departure from its socialist and democratic values is why I have argued that UK trade unions and international socialist organisations must sever ties with the UK Labour Party.
EU-UK Summit on 19 May 2025: a new chapter in post-Brexit relations?
The EU-UK Summit taking place in London on 19 May 2025 is being seen as a possible turning point in the relationship between the United Kingdom and the European Union. With Prime Minister Keir Starmer hosting EU leaders, including European Council President António Costa and European Commission President Ursula von der Leyen, the summit will focus on resetting ties post-Brexit. Key outcomes are expected to include a new security and defence partnership, a ‘Geopolitical Preambl’, and a ‘Common Understanding’ to guide cooperation on issues such as youth mobility, fishing rights, and phytosanitary standards. The government says the summit signals a commitment to regular high-level dialogue and a more pragmatic, business-like relationship between London and Brussels.
Despite the progress expected at the upcoming 2025 EU-UK summit, key Brexit-related issues remain unaddressed and must be included: ongoing business disruptions and relocations due to increased bureaucracy; long delays at ports causing trade bottlenecks; slower UK economic growth and weak trade deals; burdensome customs and regulatory red tape; loss of free movement affecting labour and UK citizens; exclusion of many service sectors from trade benefits; and the end of free mobile roaming in Europe. Tackling these challenges is vital for a truly constructive EU-UK partnership.
