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Brexit

Labour's Shift on Brexit: A Flicker of Hope Amid Economic Woes

Strategic Insights

— 2 min read

Labour's Secretary of State for Health and Social Care, Wes Streeting, has sent a signal that the party is willing to confront the economic damage caused by Brexit, sparking hope that the party may finally begin to address the issue. This change in tone comes as Labour prepares to face the UK Government's Budget, which is expected to be difficult for hard-pressed households and businesses. Streeting's comments at the Cliveden Literary Festival on October 11 highlighted the "enormous amount of jeopardy" the UK is facing due to low productivity, low growth, and high taxation. He acknowledged that Brexit is part of the problem, saying that it's "part of it" and that he's "glad that Brexit is a problem whose name we now dare speak." This declaration of bravery in speaking out against Brexit marks a significant shift in tone from Labour, which has long been seen as hesitant to criticize the UK's departure from the EU.

Key Takeaways:

  • Labour's Secretary of State for Health and Social Care, Wes Streeting, has admitted that Brexit is causing significant economic damage, sparking hope that the party may begin to address the issue.
  • Streeting's comments at the Cliveden Literary Festival on October 11 highlighted the "enormous amount of jeopardy" the UK is facing due to low productivity, low growth, and high taxation.
  • Streeting acknowledged that Brexit is part of the problem, saying that it's "part of it" and that he's "glad that Brexit is a problem whose name we now dare speak."
  • Labour's Chancellor, Rachel Reeves, also flagged the effect of Brexit on the economy last week, stating that there is "no doubting that the impact of Brexit is severe and long lasting."
  • The European Movement UK campaign group has declared that Labour's leadership is "openly confronting the economic damage caused by Brexit" for the first time since taking office.
  • Labour's red lines on Brexit remain a major barrier to tackling the damage of Brexit in a meaningful way, including not rejoining the EU, the single market, or the customs union.

Statistics:

  • Labour's Secretary of State for Health and Social Care, Wes Streeting, highlighted that the UK is facing an "enormous amount of jeopardy" due to low productivity, low growth, and high taxation.
  • The independent Office for Budget Responsibility estimates that Brexit's effect reduces the UK's overall output by around 4% compared with had it remained in the EU.
  • The UK has lost £37 billion annually in trade due to Brexit.

Sources:

  • Streeting, W. (2022, October 11). Cliveden Literary Festival.
  • Reeves, R. (2023). Interview with Sky News.
  • European Movement UK. (2023). Press Release.
  • Hughes, R. (2023, March). Office for Budget Responsibility.

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