Back to Headlines
Economy
Jun 20, 2026
Analyzed by Llama- 4 Scout 17B 16E Instruct

Brexit's Economic Impact: How Leaving the EU Has Made Britain Poorer

AI Summary
Ten years after the Brexit vote, Britain's economy is significantly smaller than it would have been if the country had remained in the EU. The decision to leave the EU has resulted in severe costs for households and businesses, with trade suffering, business investment stalling, and families being thousands of pounds a year worse off.

The Lead

As the 10th anniversary of the Brexit vote approaches, the verdict on Britain’s economic performance is clear: voting to leave has resulted in severe costs for households and businesses.

The Pound's Value Has Not Recovered

The value of the pound swung wildly after the polls closed on 23 June 2016. The collapse in the pound drove up the cost of importing goods, triggering an inflation shock that damaged the public finances and inflicted financial pain on households across the country. A decade later, the pound has never returned above its pre-Brexit level.

UK Growth Has Slowed

According to the Office for Budget Responsibility, the independent Treasury watchdog, the UK is on track to suffer a 4% hit to national income over a 15-year period. UK GDP per head is between 6% and 8% lower than it would have been without Brexit.

Trade Has Suffered from More Border Friction

Brexit involved erecting trade barriers, which has hit goods exports. The EU is still the UK’s largest trading partner: in 2025, exports to the bloc were worth £385bn (41% of all UK exports) and imports £474bn (49% of the total). Since the end of the EU transition period on 31 December 2020, growth in UK goods exports has slowed relative to the G7.

Uncertainty Sapped Business Investment

After a shock result, no clear plan from the government or leave campaigners led to years of infighting over just what Brexit – never properly defined, and often subjective – should be in practice. Amid that political turmoil businesses froze their investment plans. Investment is estimated to be close to 18% lower than it would have been under remain and productivity up to 4% lower.

Employment Has Suffered

Unemployment in the UK fell after the Brexit referendum to among the lowest rates since the 1970s, before rising sharply during the pandemic. However, experts say this obscured underlying challenges. Wage growth has stagnated, and Britain emerged as the worst-performing country in the G7 for the pace of its recovery in workforce participation after the easing of pandemic restrictions.

Brexit Support Has Faded

Public support for Brexit has steadily fallen since the 52%-48% leave vote. Polling last month by YouGov shows 70% of Britons support a closer relationship with the EU without rejoining the bloc, its single market or customs union. More than two-thirds think looser ties would be a mistake. A majority – 56% – would back rejoining the bloc outright.