The Brexit effect: how leaving the EU hit the UK | FT Film
Financial Times・2 minutes read
Brexit has negatively impacted the UK economy, leading to increased import prices, inflation, and government borrowing costs, causing a divide among businesses and uncertainty in the City of London. The decision to leave the EU has resulted in economic self-harm, a recruitment crisis in various industries, and a reshaping of the economy, with political parties avoiding honest discussions on its consequences.
Insights
- Brexit has caused significant economic harm, leading to increased import prices, inflation, and a rise in government borrowing costs, impacting households and businesses negatively.
- The UK's decision to leave the EU has resulted in a complex economic landscape, with challenges such as increased bureaucracy, a recruitment crisis, and a reshaping of the economy, highlighting the far-reaching consequences of Brexit beyond just sovereignty concerns.
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Recent questions
How has Brexit affected the UK economy?
Negative impacts on prices, investment, trade, and inflation.
What is the immediate cost per household due to Brexit-related inflation?
Around £870.
How has Brexit impacted government borrowing costs?
Viewed as reckless by financial markets.
What is the Northern Ireland protocol?
Gives Northern Ireland a unique trading position.
How has Brexit impacted business investment in the UK?
Negatively compared to other G7 countries.
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Summary
00:00
Brexit's Economic Impact: Sovereignty Over Sense
- The mini budget reflects economic policies post-Brexit, emphasizing sovereignty over economic sense.
- Brexit has led to an inability to ship goods to the EU, causing significant negative effects.
- The UK's decision to leave the EU is seen as self-harm economically, impacting prices, investment, and trade.
- Brexit has resulted in increased import prices, leading to inflation and making people poorer.
- The immediate cost per household due to Brexit-related inflation was around £870.
- Brexit has caused a rise in government borrowing costs, viewed as reckless by financial markets.
- Brexit has impacted business investment negatively in the UK compared to other G7 countries.
- Brexit has led to increased bureaucracy, making it challenging for small businesses to adapt.
- The end of free movement post-Brexit has caused a recruitment crisis in various industries.
- Brexit has resulted in a reshaping of the economy, causing a painful adjustment period for certain industries.
15:11
Brexit's Economic Impact and Political Silence
- The EU is using the Horizon Science research project as a negotiating chip, worth 95 billion euros, to pressure the UK regarding the Northern Ireland border issue.
- The Northern Ireland protocol has given Northern Ireland a unique trading position, being part of both the UK and EU single markets.
- There is a political conspiracy of silence surrounding Brexit's economic effects, hindering an honest debate on its impact.
- Both the Tory and Labour parties struggle to be honest about Brexit's consequences, with the Tories avoiding the choice between rule-taking and self-harm, while Labour fears reminding voters of their stance.
- Brexit has divided the UK, with businesses experiencing mixed outcomes, some benefiting from new opportunities while others face challenges.
- The City of London faces uncertainty post-Brexit, with businesses relocating and the lack of clarity on the benefits of leaving the EU.
- Brexit has not delivered the promised economic benefits, with trade deals mainly replicating existing agreements and the UK losing access to its largest trading partner.
- Brexit has been characterized as a slow puncture rather than an immediate crisis, potentially leading to lower wages and productivity over time.
- The lack of public awareness and discussion on Brexit's economic impact contrasts with the focus on sovereignty and control over borders.
