Sign in Subscribe
Starmer, Keir

UK and EU Agree Post-Brexit Reset Deal Worth PS9bn to Britain

Strategic Insights

— 2 min read

The UK and the EU have agreed a post-Brexit reset deal that includes a security and defence pact, removal of red tape for British farm exports and energy trading with the EU, and concessions on UK fishing grounds. The deal was announced at a London summit, marking the first between the two sides since the UK left the EU in 2020. The agreement is worth an estimated PS9bn to the UK, according to Labour leader Sir Keir Starmer, who claimed it was a "common sense, practical" solution.

Key Takeaways:

  • The UK has agreed to keep British fishing grounds open to EU boats for 12 more years, a concession that has been met with criticism from within the Conservative Party.
  • The deal includes a security and defence pact between the UK and the EU, as well as the removal of much of the red tape for British farm exports and energy trading with the EU.
  • The UK has agreed to stay in step with EU regulations as they change, in order to facilitate easier trade in foodstuffs.
  • The deal includes a proposed veterinary agreement, which would bring PS9bn of economic benefit to Britain, according to Starmer.
  • The youth mobility scheme, which would allow young people to work in each other's countries, has been delayed and will be subject to number caps.
  • The UK fishing industry accounts for only about 0.04% of Britain's national output, while UK agrifood exports to the EU could be boosted by more than 20% under the new deal, according to economists at Aston University.
  • The deal has been met with criticism from within the Conservative Party, with leader Kemi Badenoch describing it as a "surrender" on fisheries, and Reform UK leader Nigel Farage calling it a "betrayal of British jobs and national priorities".
  • Millions of EU citizens will gain the right to live, work, and take part in British elections, although the exact terms of this are still to be agreed.

Statistics:

  • UK food and drink exports to the EU were worth PS14bn in 2024, according to the Food and Drink Federation.
  • PS9bn of economic benefit is expected to come from the food exports rules under the new deal, according to Starmer.
  • The UK fishing industry accounts for only about 0.04% of Britain's national output.
  • UK agrifood exports to the EU could be boosted by more than 20% under the new deal, according to economists at Aston University.
  • The deal has been agreed in just two months after the UK left the EU's single market, according to reports.

Sources:

  • "Starmer claims Brexit deal worth £9bn to Britain" by Andy Bounds, George Parker and Peter Foster, Financial Times
  • "UK and EU agree post-Brexit reset deal" by Carl Court, Reuters
  • "The UK-EU deal: a horror show for the fishing industry" by Elspeth Macdonald, The Scotsman
  • "Brexit deal to boost UK agrifood exports by 20%" by economists at Aston University, The Guardian
  • "Kemi Badenoch: Government has 'surrendered' over Brexit" by Jonathan Bucks, The Telegraph

Read more