Report shows Brexit reset a boost to ailing UK economy

Experts warn benefits of further alignment need EU goodwill

- DAVID MADDOX

A new report has revealed that the UK economy could be boosted by 2.2 per cent of economic growth simply by aligning more closely to the EU.

The report by Frontier Economics was commissioned by Best for Britain and is understood to reflect the UK government’s own estimates of what can be achieved with the Brexit reset talks which began officially last week.

With Britain teetering on a recession, the boost could put Sir Keir Starmer and Rachel Reeves’ drive for economic growth back on track. Chief negotiator Nick Thomas-Symonds hopes a deal can be struck in three months.

Two of Britain’s leading trade experts also believe the figures are “realistic” expectations but have warned that they can only be achieved through EU goodwill, which may not have returned after Brexit. The research was carried out to reflect Sir Keir’s socalled red lines in the negotiations which are much less ambitious than rejoining the single market and customs union.

The prime minister hopes that his offer of UK support in defence and security working more closely with European allies, along with a campaign of wooing EU leaders with dinners in Downing Street will persuade them to take a more pragmatic approach to trade.

The study found that the UK government can secure significant growth (1.7 per cent to 2.2 per cent) through a policy of deep alignment in both goods and services with the EU while alignment on goods alone can also drive growth (1 per cent to 1.5 per cent).

Deep alignment is a mutual acknowledgement of each other’s standards rather than adopting exactly the same rules. Significantly, alignment on goods offers disproportionate economic dividends for areas outside London with the largest growth in this scenario projected in the West Midlands, East Midlands, North East and Yorkshire.