The UK’s divorce from the European Union was intended to help the country grow. However, as people and studies have expressed, the opposite is happening. More than half of people feel worse off than five years ago. According to a survey of 6,000 people, the cost-of-living crisis continues to bite.
Brexit and the UK economy are under question for most Brits. The economic crisis of Brexit is suffocating various groups of Brits, including poor people, workers and renters. Brexit has created a mental health crisis for young people. Almost 40 per cent of 18- to 34-year-olds say their mental health has significantly worsened. They believe it is a direct result of the cost-of-living crisis after Brexit.
Brexit and UK economy: What Estimates Say about Post-Brexit Economy
The global fiscal crisis resulted in a slower economic growth the United Kingdom and its exit from the European Union. Had the post-2010 trends been sustained, real income and private consumption per capita could have been 8-9 percent and 11-12 percent higher than current figures, respectively. However, these estimates suggest that Brexit reduced UK real GDP compared to the baseline by under one per cent in 2020.
The negative impact of Brexit gradually escalates, reaching 5-6 per cent of GDP or about £2,300 per capita by 2035. Moreover, the reduction in real incomes and the fall in productivity are the most significant contributors to the estimated reduction in real GDP. 2.5 percentage points go to each of the previously mentioned cases.
Brexit and UK economy: What Brits Pay for Brexit
The report said divorcing from the EU made London’s economy to be shorter by a little over £30 billion (€35 billion). The average Briton was nearly £2,000 worse off in 2023, while the average Londoner was £3,400 worse off last year due to Brexit.
The report’s calculations also show that due to Brexit, there are now 1.8 million fewer jobs overall in the UK. Almost 300,000 fewer jobs will be in the capital alone. The report’s figures are the result of gross value added (GVA). It Shows that the production of goods and services increase the value of the economy for.
A Failure in Brexit Promise: The Poor Are Getting Poorer
The reality of Brexit is getting darker. Poor people are suffering the most – and now everyone can see it. Enveloped in Westminster, silence it may be, but every day and in every way, Brexit is getting righter. For so long, this was an argument made through the medium of abstract nouns: “freedom“, “sovereignty”, and “control”. But now reality is intruding. This week came word that Brexit added almost £6bn to Britons’ food bills over two years.
Looking back, it was always clear that leave campaigners sought to avoid the realm of the concrete. They preferred to stick with the intangible talk of “independence” or a regained mastery of our national destiny. They knew reality was a hostile environment for the Brexit project, one that would expose its folly. Brexit is becoming a nightmare for the UK economy.
Brits See Themselves Poorer Compared to Five Years Ago
6,000 people took part in a survey. It found that more than half of people feel worse off now than they did five years ago. It showed that the cost-of-living crisis continues to bite. Compare the Market Website conducted a study. It was found that 53 per cent of people feel poorer than they did at the end of last decade, and six in 10 have no confidence that their energy bills will be lower over the next year under the new Labour Government.
Guy Anker said: “There’s no doubt that the cost of living over the last few years has been incredibly tough. Over half feel poorer today than they did five years ago. “Events beyond any government’s control have significantly added to the difficulty financially supporting households. Nonetheless, people want the new Government to actively do more to make them feel better off.”
Brexit Making Problems Renters and Mortgage Holders
Another effect of Brexit is on the bank base rates. Both renters and mortgage holders have been struggling under historically high interest rates. The Bank of England’s 5.25 percent base rate is currently at 16-year highs. However, a third of renters cannot turn to government benefits. According to recent research from lender Creditspring, three in 10 renters have had to lean on benefits to get by. Another 40 percent said that this is the most financially unstable they have ever felt.
Neil Kadagathur, chief executive at lender Creditspring, previously said: “Rental prices have soared in recent years. Many renters have raided savings pots and borrowed to make ends meet. After exhausting those options, many renters must turn to benefits to meet their monthly bills.” Research published by data-gathering website Statista suggests landlords were increasing their prices due to the rising cost of running a rental property.
Brexit: Worrying Young People for Financia Support of Life
Young people who were not entitled to vote for Brexit, feel the post-Brexit economic pressure. As such, further research from Creditspring previously found that money worries are creating a discomfort for young people. Sharp rises in rental values have a more significant disproportionate impact on young people. The lender found that a third of young people say they are more in debt than 12 months ago. Another third says their financial worries have reached the point where they cannot sleep.
Young people feel more anxious due to Brexit. A third of young people feel more anxious now than this time last year. With Britain leaving the European Union, money worries and the cost of housing have magnified doubts about prospects. The most commonly cited reasons for young people worries were: the UK leaving the European Union (42%), the ability to afford a home in the future (41%), their current financial position (37%), not earning enough to live on (35%) and finding a job (34%).
Brexit and UK economy: Holidays Gone to Meet Needs
Some people said they have cut back on holidays (27%), eating out (25%), and groceries (18%) to cover motor insurance costs. Censuswide carried out research in March before the general election.
Despite recent dips in energy prices, six in 10 (61%) people surveyed did not feel confident that energy bills will be lower over the next year. More than half (54%) of people surveyed believe reductions in mortgage costs should be a priority.
Brexit is worsening the cost-of-living crisis: Workers are another group that suffers.
Workers as an important element of economy needs to supply their lives. The Resolution Foundation, says EU withdrawal is fuelling higher import costs and costing British workers nearly £500 a year. The Resolution Foundation said the average worker in Britain was now on course to suffer more than £470 in lost pay each year by 2030.
However, with the expected decline in the efficiency of the British economy after Brexit, the academics said inflation-adjusted pay would see a 1.8% fall by 2030. This was equivalent to a loss of £472 per worker per year. The research estimated that Labour productivity would experience a reduction of 1.3% by 2030.
