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Brexit has cost the UK £140bn so far, according to new analysis, and could see the nation £311bn worse off by the middle of the next decade, according to a new report.

Economists and analysts at Cambridge Econometrics – commissioned by London’s mayor, Sadiq Khan – have modelled how the UK’s economy would have acted were it still in the European Union.

This was compared to data published by the Office for Budget of Responsibility in March 2023, and forecasts based on those data. Those official forecasts have since been downgraded as of November last year.

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The headline findings from the report include lower growth, lower employment, strong negative impacts on investment, imports falling more than exports, and a growing gap between London and the rest of the UK.

The report analysed the gross value added – GVA – which is a measure of how much value is added by an area through the production of goods and the actions of services.

Cambridge Econometrics says it found UK GVA was £2,207bn in 2023 under current circumstances, and will be £2,771bn by 2035.

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But without Brexit, the organisation states the UK would have had a GVA of £2,347bn in 2023, and it would have reached £3,082bn by 2035.

This equates to GVA being 6% lower in 2023 than it would have been without Brexit, and 10.1% lower in 2035.

They found that, by 2035, the UK is anticipated to have three million fewer jobs, 32% lower investment, 5% lower exports and 16% lower imports, than it would have had if the UK had not left the EU.

Cambridge Econometrics also found Brexit is expected to cause the productivity gap between London and the rest of the UK to widen further.

The scenario which included the UK in the EU used an E3ME model, which is used transnationally for forecasting. It includes data from UN, OECD, World Bank, IMF, the ONS and Eurostat.

The report says it tried to “isolate and subtract” the “Brexit effect” from factors like trade and investment in the main scenario – which it says is “effectively modelling a scenario in which other factors (eg, the COVID-19 pandemic and the war in Ukraine) took place but Brexit did not”.

Stock image of Sadiq Khan
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Mr Khan will use the study to argue for a closer relationship with the EU

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Shyamoli Patel, principal economist at Cambridge Econometrics, said: “Our study reveals that London’s economy would have grown faster if Brexit hadn’t taken place. Looking ahead, we project that Brexit will continue to have an impact on the UK and London economies in the medium term.”

Mr Khan is set to use the report to make the case for a closer relationship with Europe on Thursday evening at Mansion House.

The London mayor will say that it is “now obvious that Brexit isn’t working” – blaming the “hard-line Brexit we’ve ended up with”.

Mr Khan will add: “The cost of Brexit crisis can only be solved if we take a mature approach and if we are open to improving our trading arrangements with our European neighbours.

“I agree with the shadow foreign secretary [David Lammy], who has said we urgently need to build a closer relationship with the EU.”

With a general election looming, Brexit will be an issue used to attack Labour and its leader Sir Keir Starmer, who backed a second referendum.

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Vietnam legalizes crypto under new digital technology law

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Vietnam legalizes crypto under new digital technology law

Vietnam legalizes crypto under new digital technology law

Vietnam has passed a sweeping digital technology law that legalizes crypto assets and outlines incentives for AI, semiconductors, and infrastructure.

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Brazil ends crypto tax exemption, imposes 17.5% flat rate on gains

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Brazil ends crypto tax exemption, imposes 17.5% flat rate on gains

Brazil ends crypto tax exemption, imposes 17.5% flat rate on gains

Brazil scraps crypto tax exemption for small traders, enforces flat 17.5% rate across all gains, including self-custody and offshore holdings.

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A scrambled G7 agenda as world leaders scramble to de-escalate the Israel-Iran conflict

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A scrambled G7 agenda as world leaders scramble to de-escalate the Israel-Iran conflict

The return on Donald Trump to the G7 was always going to be unpredictable. That it is happening against the backdrop of an escalating conflict in the Middle East makes it even more so.

Expectations had already been low, with the Canadian hosts cautioning against the normal joint communique at the end of the summit, mindful that this group of leaders would struggle to find consensus.

Canadian Prime Minister Mark Carney carefully laid down an agenda that was uncontroversial in a bid to avoid any blow-ups between President Trump and allies, who of late have been divided like never before – be it over tariffs and trade, Russia and Ukraine, or, more recently Israel’s conduct in Gaza.

But discussions around critical minerals and global supply chains will undoubtedly drop down the agenda as leaders convene at a precarious moment. Keir Starmer, on his way over to Canada for a bi-lateral meeting in Ottawa with PM Carney before travelling onto the G7 summit in Kananaskis, underscored the gravity of the situation as he again spoke of de-escalation, while also confirmed that the UK was deploying more British fighter jets to the region amid threats from Tehran that it will attack UK bases if London helps defend Israel against airstrikes.

Canadian Prime Minister Mark Carney is greeted by President Donald Trump as he arrives at the West Wing of the White House, Tuesday, May 6, 2025, in Washington. (AP Photo/Mark Schiefelbein)
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Canadian PM Mark Carney is greeted by President Donald Trump at the White House in May. Pic: AP

Really this is a G7 agenda scrambled as world leaders scramble to de-escalate the worst fighting between Tel Aviv and Tehran in decades. President Trump has for months been urging Israel not to strike Iran as he worked towards a diplomatic deal to halt uranium enrichment. Further talks had been due on Sunday – but are now not expected to go ahead.

All eyes will be on Trump in the coming days, to see if the US – Israel’s closest ally – will call on Israel to rein in its assault. The US has so far not participated in any joint attacks with Tel Aviv, but is moving warships and other military assets to the Middle East.

Sir Keir, who has managed to strike the first trade deal with Trump, will want to leverage his “good relationship” with the US leader at the G7 to press for de-escalation in the Middle East, while he also hopes to use the summit to further discuss the further the interests of Ukraine with Trump and raise again the prospects of Russian sanctions.

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“We’ve got President Zelenskyy coming so that provides a good opportunity for us to discuss again as a group,” the PM told me on the flight over to Canada. “My long-standing view is, we need to get Russia to the table for an unconditional ceasefire. That’s not been really straightforward. But we do need to be clear about what we need to get to the table and that if that doesn’t happen, sanctions will undoubtedly be part of the discussion at the G7.”

Prime Minister Sir Keir Starmer (right) is greeted by Prime Minister of Canada Mark Carney as he arrives at Rideau Cottage in Ottawa
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Prime Minister Sir Keir Starmer (R) is greeted by Mark Carney as he arrives in Ottawa ahead of the G7

But that the leaders are not planning for a joint communique – a document outlining what the leaders have agreed – tells you a lot. When they last gathered with Trump in Canada for the G7 back in 2018, the US president rather spectacularly fell out with Justin Trudeau when the former Canadian president threatened to retaliate against US tariffs and refused to sign the G7 agreement.

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Since then, Trump has spoken of his desire to turn Canada into the 51st state of the US, a suggestion that helped catapult the Liberal Party beyond their Conservative rivals and back into power in the recent Canadian elections, as Mark Carney stood on a ticket of confronting Trump’s aggression.

With so much disagreement between the US and allies, it is hard to see where progress might be made over the next couple of days. But what these leaders will agree on is the need to take down the temperature in the Middle East and for all the unpredictability around these relationships, what is certain is a sense of urgency around Iran and Israel that could find these increasingly disparate allies on common ground.

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