| 1andrew1 |
28-01-2025 12:40 |
Re: Britain outside the EU
UK in a Changing Europe promotes rigorous, high‑quality and independent research into the complex and ever changing relationship between the UK and the EU. It is funded by the UK Government's Economic and Social Research Council and based at King’s College London.
It has published report into the UK post Brexit.
One of the key findings is the likely 10% reduction in investment, discussed in this extract.
Quote:
The UK has long faced challenges with low investment levels, affecting both business and public infrastructure. While these issues predate Brexit, the economic uncertainty stemming from the UK’s decision to leave the EU has deepened the country’s investment struggles. One of the most significant consequences of Brexit was the loss of funding from the European Investment Bank (EIB), which historically played a critical role in financing major UK infrastructure projects. Despite efforts to replace this funding with new domestic investment banks, the gap remains substantial, posing significant challenges to Labour’s plan for future growth.
There is a consensus that low levels of investment, both private and public, have held back productivity growth. The relatively low level of business investment in the UK pre-dated Brexit, but both aggregate data and survey evidence strongly suggest that Brexit is at least partly responsible for the particularly poor performance since 2016.
Investment may have been 10% lower than expected, potentially reducing productivity and GDP by over 1%. Some argued that this was driven primarily by Brexit uncertainty – and so would improve once the Brexit deal was implemented – but there is little evidence of this to date. The UK has continued to underperform the rest of the G7 on investment. Additionally, the UK saw rapid growth in business investment from 2010 to 2016 but as of Q2 2024, business investment remains at the same level as in Q2 2016.
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https://media.ukandeu.ac.uk/wp-conte...m-to-reset.pdf |
