Brexit cost the UK billions in lost trade and tax revenues, research finds | ITV News

ITV News

9 Jun 202202:50

Summary

TLDRThe video script discusses the impact of Brexit on the UK's economy and its citizens, particularly in Brixham where the fishing industry is suffering due to new customs rules. Ian Perks, a fish buyer, reveals his business is incurring additional costs and he regrets voting for Brexit. The Center for European Reform's analysis indicates the UK's economy is 5% smaller due to Brexit, with reduced investment and trade. Despite the pandemic's effect on economies worldwide, the UK's lagging recovery suggests Brexit played a significant role in its economic downturn. While some view Brexit as a price worth paying for political independence, the economic damage is becoming increasingly evident.

Takeaways

🌅 Brexit was initially sold as a new dawn, but it has not worked out that way for some, particularly in Brixham.
🎣 The fishing industry, which mainly sends fish through France, Belgium, and Holland, is struggling with new customs rules post-Brexit.
📋 Fish exporter Ian Perks reports an additional cost of £300 per day due to paperwork and customs forms for exporting to the EU.
💭 There's a feeling of disillusionment as businesses like Ian's were promised prosperity after Brexit but are facing challenges instead.
📉 The Center for European Reform's analysis shows the UK's economy was 5% smaller by the end of last year compared to staying in the EU.
💰 Brexit has resulted in billions of pounds in lost trade, investment, and tax revenues for the UK.
🔄 Trade in goods has decreased by 13%, and services trade by 7% since the Brexit referendum.
🤔 The pandemic's impact on economies is considered, but the UK's lagging recovery suggests Brexit has been a significant factor.
🎯 The analysis indicates Brexit's negative economic consequences, despite the Prime Minister's promises of a high wage, high productivity, low tax economy.
🌍 Political independence was a key motivation for Brexit, and some, like Karen Morris, believe the disruptions are a worthy price to pay for it.
🌪️ Recent economic shocks like the pandemic and the war in Ukraine have impacted the economy, but the long-term damage from Brexit is becoming increasingly evident.

Q & A

How was Brexit initially presented to the people of Brixham?
-Brexit was presented as 'a new dawn' to the people of Brixham, suggesting a positive change and improvement in their economic situation.
What are the main export destinations for fish from Brixham?
-The main export destinations for fish from Brixham are France, Belgium, and the Netherlands.
What additional costs has Brexit caused for Ian Perks' fish export business?
-Brexit has caused Ian Perks' fish export business to incur additional costs of £300 per day due to new customs rules.
How has the UK government's promise of a 'high wage, high productivity, low tax' economy been reflected in reality post-Brexit?
-The evidence suggests that Brexit has not produced the promised economy. Instead, it has resulted in lost trade, investment, and tax revenues, which contrasts with the prime minister's promises.
What is the Center for European Reform's conclusion about the UK's economic performance if it had remained in the EU?
-The Center for European Reform concluded that, by the end of the year, the UK's economy would have been 5% larger than it actually was, with higher investment and government spending, had the UK stayed in the EU.
How does the UK's current economic situation compare to other economies that have recovered from COVID-19?
-While most economies have recovered and are now larger than they were before the pandemic, the UK's economy has lagged behind, suggesting that Brexit is a major contributing factor to this discrepancy.
What sectors of the UK economy have been particularly affected by Brexit?
-Both goods trade and services trade have been negatively impacted by Brexit, with services trade being affected more significantly, showing a 7% decrease.
What are some of the economic shocks the UK has faced in recent years?
-The UK has faced a series of economic shocks including the COVID-19 pandemic, Brexit, and the war in Ukraine, all of which have contributed to the cost of living squeeze.
How does the Brexit impact differ from the impact of the pandemic and the war in Ukraine?
-While the pandemic and the war in Ukraine have had significant economic impacts, the economic damage caused by Brexit is becoming clearer and harder to ignore, as the UK's economy has not recovered at the same pace as other economies.
What does the transcript suggest about the overall economic impact of Brexit on the UK?
-The transcript suggests that Brexit has had a negative economic impact on the UK, costing the country billions of pounds in lost trade, investment, and tax revenues, at a time when the national debt is rising and living standards are falling.
What is the perspective of the individual who regrets voting for Brexit?
-The individual who regrets voting for Brexit expresses a desire for the UK to still be a part of the EU, acknowledging that Brexit has resulted in a harder working environment with less money and additional administrative burdens.

Outlines

00:00

🐟 Impact of Brexit on the Fishing Industry

This paragraph discusses the challenges faced by the fishing industry in Brixham post-Brexit. It highlights the increased costs and paperwork due to new customs rules, as experienced by Ian Perks, a buyer whose customers are primarily in the EU. The narrative reveals a sense of disillusionment as the business owner, initially in favor of Brexit, now regrets the decision. The segment also includes data from the Center for European Reform, which estimates a 5% smaller economy and reduced investment and trade, attributing these issues mainly to Brexit rather than the pandemic.

Mindmap

Keywords

💡Brexit

Brexit refers to the United Kingdom's decision to leave the European Union (EU), following a 2016 referendum. In the context of this video, Brexit is portrayed as a pivotal event that has significantly impacted businesses and the economy in Brixham, a fishing town. Business owners, like Ian Perks, face new challenges due to customs rules and additional costs associated with exporting fish to the EU, highlighting the immediate economic consequences and adjustments required post-Brexit.

💡Brixham

Brixham is a coastal town in Devon, England, known for its fishing industry. The video uses Brixham as a case study to illustrate the real-world impacts of Brexit on local businesses, particularly those dependent on trade with the EU. Ian Perks' experience in the fish market exemplifies the challenges faced by exporters due to new trade barriers and regulations.

💡Customs rules

Customs rules refer to the regulations and procedures involved in importing and exporting goods between countries. Following Brexit, the UK established new customs arrangements with the EU, leading to additional paperwork and costs for businesses. In the video, the mention of customs rules encapsulates the bureaucratic and financial hurdles that Ian Perks and similar business owners must overcome to continue trading with EU countries.

💡Economic impact

The economic impact of Brexit discussed in the video refers to the overall effect on the UK's economy, including reduced trade, investment, and national income. The Center for European Reform's analysis, which concludes that the UK economy was five percent smaller than it would have been if it had remained in the EU, underscores the significant financial consequences of Brexit. This concept ties together various elements of the narrative, from individual businesses to national economic performance.

💡Investment

Investment in the context of this video refers to the allocation of resources by businesses and the government towards future growth and infrastructure. The analysis mentioned highlights a 13% decrease in investment post-Brexit, indicating diminished confidence and financial commitment from both private and public sectors. This drop in investment is portrayed as a direct outcome of the uncertainties and challenges posed by Brexit.

💡Trade

Trade, particularly goods trade and services trade, is a central theme in assessing Brexit's consequences. The video points out that while goods trade saw a reduction, services trade experienced a growth. This distinction emphasizes the varied effects of Brexit on different sectors of the economy, illustrating the complexity of its impact on the UK's international commerce.

💡Pandemic

The pandemic is mentioned as a global event that, alongside Brexit, has influenced the UK's economic conditions. The video posits that while most economies have recovered from COVID-19, the UK's lagging performance suggests Brexit as a significant factor in its slower recovery. This comparison serves to differentiate the effects of the pandemic from those of Brexit, highlighting the latter's lasting impact on economic challenges.

💡Political independence

Political independence is cited in the video as a key motivation for some individuals supporting Brexit, despite economic drawbacks. Karen Morris views any disruption as a 'price worth paying' for greater autonomy from the EU. This perspective introduces the non-economic rationale behind Brexit, focusing on sovereignty and self-determination as valuable outcomes for its proponents.

💡Economic modeling

Economic modeling is a method used to predict or analyze economic performance under different scenarios. The Center for European Reform used economic modeling to compare the UK's post-Brexit economy with a hypothetical scenario in which the UK had remained in the EU. This approach helps to quantify Brexit's impact, providing a basis for the claims made about the economic consequences of leaving the EU.

💡National debt

National debt is mentioned in the context of Brexit's financial repercussions for the UK. The loss in trade, investment, and tax revenues has implications for the country's fiscal stability, contributing to rising national debt. This concept ties the broader economic challenges back to the government's finances, underscoring the potential long-term effects of Brexit on public services and economic policy.

Highlights

Brexit was sold as a new dawn, but its impact on the people of Brixham has been different.

The fish market in Brixham remains open, but exporting fish to the EU now requires filling in forms due to new customs rules.

Ian Perks, a buyer at the fish market, is experiencing increased costs due to Brexit, estimating an extra £300 per day for his business.

Ian Perks feels that he and others were brainwashed regarding the benefits of Brexit.

The Prime Minister visited Brixen and assured that businesses would boom after Brexit, but Ian's experience contradicts this promise.

Brexit has resulted in the UK having to work harder for less money and has necessitated the hiring of extra staff for administrative tasks.

Ian Perks, who initially voted for Brexit, now regrets his decision and wishes the UK remained in the EU.

The Center for European Reform has modeled the economic performance of a UK that stayed in the EU and compared it with the actual post-Brexit performance.

The analysis shows that by the end of the previous year, the UK's economy was 5% smaller than it would have been if the UK stayed in the EU.

Investment by businesses and government in the UK was 13% lower due to Brexit.

While most economies have recovered from COVID, the UK's economic performance lags behind, suggesting Brexit as a major cause.

Brexit has cost the UK billions in lost trade, investment, and tax revenues, impacting the country during a time of rising national debt and falling living standards.

The Prime Minister's promise of a high wage, high productivity, low tax economy has not yet materialized for many due to Brexit.

For some, like Karen Morris, Brexit was about political independence rather than economic growth, and she has no regrets despite economic disruptions.

Recent economic shocks, including the pandemic and the war in Ukraine, have affected the UK economy, but the damage caused by Brexit is becoming increasingly evident.

Joel Hills from ITV News in Brixton reports on the varied experiences and perspectives on Brexit's impact on the UK economy and individuals' livelihoods.