Brexit has 'cut trade in all sectors of UK economy'

Report advises rejoining single market over customs union

- KATE DEVLIN

Almost every sector of the economy has been hit by Brexit, according to a new analysis that warns some of the proposals for closer ties with the European Union would do little to repair the damage.

Researchers at the Centre for European Reform think tank found exports of chemicals and pharmaceuticals have fallen by 21 per cent since the UK left the EU, while those classed as “agrifood” are down 29 per cent.

The report argues that many of the economic costs of Brexit stem from Britain’s departure from the bloc’s single market, suggesting recent calls for a new customs union with the EU would only have a limited impact.

Almost 10 years on from the Brexit vote, the experts urge politicians not to risk repeating the mistakes of that era by pursuing “options that are either unavailable on the terms they envisage, or... unlikely to contribute meaningfully to economic growth”.

The findings come amid a growing debate over what the UK’s relationship with the EU should look like.

While calls for a customs union have gained support among some politicians and business groups, the researchers argue that rejoining the single market would do more to boost trade and economic growth.