“The UK is still one of the biggest economies in the world”
Joshua Mackenzie-lawrie
Leaving the European Union improves the UK’S ability to grow into the new global economy. We already see the trend of economic success outside the EU. UK exports to the EU have fallen to 43 per cent of total exports; that figure was nearly 50 per cent a few years ago. GDP in the European Union is growing at a much slower rate than the global average.
At the moment, only between five and eight per cent of UK businesses trade with the EU. But the 92 per cent or more UK businesses that don’t trade with the EU must still follow all EU directives and regulations. Outside the EU, the UK can be a hub of innovation. Global exports of technology and agriculture will expand rapidly. Fintech groups based in the UK are already finding new trading relationships.
Covid-19 is a far bigger threat to our economy than Brexit, but our ability to recover will be greater away from the EU, as leaving will lessen the red tape restricting some businesses at the moment. The government will be able to give targeted support to industry, for example by developing free ports, ensuring that business taxes are reduced in some areas, removing barriers to business start-ups and implementing a better immigration system.
Within the EU, the UK has to follow a trading agenda in line with 27 other countries. Outside, we are free to negotiate individual agreements to suit our specific economic interests. Talks between the UK and the US are already progressing well. Our recent trade deal with Japan goes further than the one agreed by the EU, with more flexibility and reduced tariffs on agricultural exports to Japan.
The UK is still one of the biggest economies in the world. The City of London will remain the headquarters of the European financial services sector. We’re not going to stop trading with European nations. Will some barriers arise from the UK leaving the EU? We expect so. This comes with change — a change that is certainly worthwhile, considering the benefits of reclaiming sovereignty and the principles of Brexit.