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From Report Details Brexit's Economic Impact, Urges EU Single Market Rejoinment

How could the debate on EU rejoinment affect the Labour Party's policy direction?

Possible What happens if… A possibility worth considering, not a forecast.

The debate on EU rejoinment could shape the Labour Party's policy direction The discussion between Wes Streeting and Andy Burnham is framed by economic findings that detail the damage caused by Brexit across the UK economy. Researchers at the Centre for European Reform found that exports of chemicals and pharmaceuticals have fallen by 21 per cent since the UK left the EU, while agrifood exports are down 29 per cent. The report suggests that while a customs union would reduce trade barriers, rejoining the single market would do more to boost trade and economic growth, though this would require returning to freedom of movement and making substantial contributions to the EU’s Budget. This analysis provides the substance for the political debate that influences the Labour Party's stance on the UK's relationship with Europe.

Reported by 1 independent outlet Written Oct 16
Effect
Mixed
How direct
2 steps, 1 inferred by Brind
When
Within months
The story
Gone quiet

How it reaches Labour Party

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The facts so far

As reported. Each one links to where it comes from.

  • Exports of chemicals and pharmaceuticals have fallen by 21 per cent since the UK left the EU.independent.co.uk
  • Exports classed as “agrifood” are down 29 per cent.independent.co.uk
  • The travel industry is down 39 per cent, while financial services exports have fallen 24 per cent.independent.co.uk
  • Total UK exports to the EU have fallen by about 12 per cent and total imports by about 16 per cent.independent.co.uk

Why it matters

The Labour Party's policy stance on the UK's relationship with Europe is a defining issue for its electoral prospects and internal cohesion. The debate over whether to pursue a customs union or attempt to rejoin the single market represents a fundamental choice about the economic future of the UK, given the reported losses across nearly every sector of the economy.

This discussion occurs amid a wider political debate about the scale of the challenge posed by Brexit. The Centre for European Reform's findings provide a stark economic baseline, showing that the departure from the bloc's single market has reduced trade in nearly every sector, placing pressure on politicians to define a path forward that addresses these significant economic costs.

What we don't know yet

  • Will the Labour Party prioritize economic growth through single market access or political feasibility through a customs union?
  • How will the Labour Party balance the desire for closer ties with the political difficulty of returning to freedom of movement?

What would change this answer

The Labour Party announces a formal policy position on EU membership.This would immediately solidify the direction of the party's policy, making the effect of the debate on Labour Party's stance more certain.
The Treasury provides a detailed economic assessment of the options presented by the Centre for European Reform.This would provide more concrete data on the potential economic benefits and costs, potentially strengthening or weakening the arguments used by the Labour Party.

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Questions worth asking

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  • About Keir Starmer

    Given the economic findings about trade damage, what is Keir Starmer's current position on whether the Labour Party should pursue a customs union or attempt to rejoin the single market?

  • About Angela Rayner

    How might Angela Rayner's views on the UK's relationship with Europe influence the Labour Party's internal debate between figures like Wes Streeting and Andy Burnham?

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Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.