Supply chains have become more complex (Gareth Fuller/PA)
(Picture: PA Wire)In 2016, it was clear that the social, economic, and political ramifications of Brexit were going to be huge. Even prior to the negotiations and delivery of the leave agreement, uncertainty was rife across the UK, with businesses showing real signs of hesitancy and worry. In fact, according to ONS data, business investment today remains more than 9% lower than it was on the date of the Brexit referendum, and has flatlined from 2016 to the outset of the pandemic.
On the sixth anniversary of the Brexit referendum, the close timing of the UK’s departure from the EU and Covid-19 makes it difficult to disentangle the effects of these two events on the UK economy. However, the evidence we have strongly suggests that Brexit may have had a significant impact via higher prices of imported goods, lower wages in some parts of the country, and higher uncertainty, which reduced foreign investments. However, and perhaps surprisingly, for years after the referendum, the impact of Brexit on trade has been limited – until now.
