Is Brexit Rightly Blamed For UK Economic Setback?

credit: weforum

London (Parliament Politics Magazine) – Brexit is the ultimate reason why the UK economy is suffering. According to experts, the UK economy has been facing a lot of problems due to Brexit. Is Brexit destroying the UK economy? Brexit has been facing a fresh round of austerity and this has caused concern for the UK. 

The UK economy has been permanently damaged by Brexit. Michael Saunders, who used to work as an external member of the central bank’s monetary policy committee shared his thoughts in an interview. 

It has reduced the economy’s potential and has eroded business investment as well. If the UK did not have Brexit, we probably the country would be taking on an austerity budget this week.

Brexit Is Responsible For The Tax Rise And Spending Cuts

There is a high need for tax rises and spending cuts in the UK. Brexit has reduced the economy’s potential output so much and the country has been facing a crisis due to this. After the result of the Brexit referendum in 2016, the problems are getting even bigger. The weak economic output of the UK has resulted in the public suffering from a financial deficit. Products and services have become expensive due to the tax rise.

Brexit is to blame for all these circumstances because the UK has lost billions in trade and tax revenues in recent years. According to a new study by economists the country has seen a lot of setbacks and is suffering a high economic crisis.

The Centre for European Reform (CEF) revealed that Britain’s economy was 5.2 percent and it has become £31bn – smaller than it could have been without Brexit and the Covid pandemic.

Brexit Has Done Permanent Harm To The UK’s Economy 

Brexit has destroyed much of the UKs economy. It has imposed considerable bureaucracy and has caused a lot of inconvenience and expense upon U.K. exporters. It imposes the same on the customers who simply choose to buy elsewhere other than the UK.

The customer in the EU has been dealing with the exporters and importers in the past years without having to pay them much taxes. But now things have changed and the tax ratio is at all time high now. In the future, the UK financial situation could get worse because it is going to be burdened with having to register with the authorities. As an importer, you might have to apply for an EORI number, complete import documentation, or might have to pay an agent which could be expensive.

The non-EU components or products could get higher and the customers will have to pay VAT on the goods when they arrive from another country. In some cases, people might have to provide health certificates and/or certificates of origin. The prices could also have gone up to cover the increased transport charges after the disaster caused by Brexit’. Most customers are going to switch to other dealers and will probably say ‘forget it’. They would find a source elsewhere or do without it.

Export And Import Is Affected 

Thousands of companies that have been supplying tens of thousands of customers will have to shut their business. They will get no orders and this could result in financial losses for all the big-budget businesses all over the EU. The stupid approach taken by the UK government has put a bad effect on the economy. Brexit has done permanent harm and this has resulted to lower growth than it would likely experience.

There might be some opportunities in Brexit (if we Brexit) to make money but that could mainly be in the voting region. The chances are only for people with a position. Plenty of people in the UK did well after the 2008 financial crisis. There were a few traders who faced losses but they bargained and managed to acquire cheap assets to prevent their businesses from going bankrupt.

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UK Is Facing Side Affects Of Brexit Disaster 

The side effect of the Brexit disaster has destroyed the UK’s economy. Many different sectors in the UK have become powerless although they have been making efforts to rise again. The divided country between leavers and remainders has caused a lot of negative consequences. A lot of it can be seen in the negotiation of the withdrawal treaty. The UK is weak and the remaining supporters refuse to accept the result of the referendum. This has pulled the UK down and it is likely to go down even more due to the consequences of the Brexit disaster.

Beth Malcolm

Beth Malcolm is Scottish based Journalist at Heriot-Watt University studying French and British Sign Language. She is originally from the north west of England but is living in Edinburgh to complete her studies.