Revealed: Brexit has reduced UK exports by £27bn, new report claims
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A report by the Centre for Economic Performance (CEP) has revealed that small businesses have been worst hit by a £27bn drop in exports caused by Brexit. A damning report has revealed that British exports have been hit with a £27 billion loss as a result of Brexit.
The paper by the Centre for Economic Performance (CEP) has found that Boris Johnson’s Trade and Cooperation Agreement (TCA) has reduced total goods exports from the UK by an estimated £27bn (or 6.4 per cent) in 2022 – due to a 13.2 per cent fall in the value of goods exported to the EU.
It comes as the government prepares to open talks in the new year for a Brexit deal reset with the EU but is being pressed to make significant compromises on allowing the European Court of Justice to have jurisdiction in the UK and allowing free movement for young people.
The CEP, based at the London School of Economics and Political Science (LSE), uses data from more than 100,000 firms to estimate the gap between the actual value of exports under the TCA and what would have been expected had the UK remained in the EU.
It finds that 14 per cent of firms (around 16,400 firms) that had previously exported to the EU stopped doing so after the TCA came into force in January 2021. The report claims that among firms that continued exporting to the EU, the TCA reduced the average value of EU exports by 30 per cent for the smallest fifth of firms (with six or fewer employees) and by 15 percent for the middle fifth (between 17 and 40 employees).
