Five years after Brexit: is the UK better off?
January 31, 2025, marks five years since the United Kingdom officially left the European Union. Public opinion has shifted, and many now believe Brexit was a mistake. Economic, social, and cultural consequences continue to shape the country’s future.
A divided nation
On the night of January 31, 2020, two groups gathered near the British Parliament. Some celebrated, waving UK flags, while others mourned, holding EU banners. The UK’s departure from the EU ended almost 50 years of membership, affecting free movement and trade with 27 European nations.
Supporters saw Brexit as a step toward sovereignty. Opponents feared isolation and economic decline. Five years later, businesses and individuals still struggle with the repercussions. Political analyst Anand Menon describes the impact as “profound,” stating that it has reshaped the UK’s economy.
Economic fallout
The Brexit referendum in 2016 followed decades of deindustrialization and austerity. Many voters believed leaving the EU would allow the UK to “take back control” of its borders and economy. The 52% to 48% vote shocked the nation. The government, unprepared for the split, faced years of political turmoil.
The UK left the EU without an economic agreement in place. Negotiations lasted months, resulting in a deal on Christmas Eve 2020. The agreement removed tariffs but introduced bureaucracy, extra costs, and delays.
Business owners like Lars Andersen, whose company exports school labels to 150 countries, have adapted by setting up operations in Ireland. Others ceased trading with the EU or relocated production outside the UK. The Office for Budget Responsibility predicts a long-term 15% decline in British trade and a 4% drop in productivity.
Unexpected immigration trends
Immigration was a major concern for Brexit voters. However, instead of decreasing, it has surged due to increased work visas for global applicants. This shift contradicts earlier promises of tighter border control.
Geopolitical challenges
The rise of protectionist leaders, including former U.S. President Donald Trump, has complicated the UK’s position. The nation is caught between European neighbors and its “special relationship” with the United States.
“The world is less forgiving now than in 2016,” says Menon. Surveys indicate that most Britons now regret Brexit. Despite this, rejoining the EU remains unlikely. Memories of divisive debates linger, and few wish to revisit the turmoil.
Future relations with the EU
Labour Prime Minister Keir Starmer, elected in July 2024, has pledged to rebuild UK-EU ties. However, he ruled out rejoining the customs union or single market. His administration seeks minor improvements, such as easing travel for artists and recognizing professional qualifications.
EU leaders welcome Starmer’s diplomatic approach but face their own internal challenges. As populism rises across Europe, the UK is not a priority for the bloc. For now, Britain remains outside the EU, navigating an uncertain economic and political landscape.
