Displaying items by tag: Brexit

Brexit has had a significant impact on London’s financial sector, with an estimated 40,000 finance jobs lost since the UK’s departure from the EU, according to Michael Mainelli, the Lord Mayor of the City of London. This figure is at odds with previous estimates, including a 2022 assessment which put the job loss at around 7,000. While cities like Dublin, Milan, Paris, and Amsterdam gained positions from the migration of jobs, London’s financial centre has continued to grow, adding roles in insurance and data analysis, bringing the total workforce to 615,000. Mainelli's remarks come as Britain seeks to restore relationships with Europe amid a broader economic slowdown. Although many had hoped Brexit would reduce immigration and deregulate industries, it has proven difficult to disentangle regulations, and the economic slowdown has persisted. Keir Starmer is attempting to rebuild ties with the EU, focusing on improving business relations but ruling out rejoining the single market.

Sir Keir Starmer made his first visit to Brussels this week, aiming to rebuild UK-EU relations post-Brexit. His visit focused on strengthening cooperation in defence, security, energy, climate change, and tackling irregular migration. While Starmer’s message of 'sensible leadership' was welcomed, the EU remains cautious, particularly regarding Labour’s call to reduce trade barriers. The EU reminded Starmer that these barriers stem from the UK’s decision to leave the single market and customs union, which he reaffirmed will not be renegotiated. Discussions on migration found some agreement, particularly regarding stopping people-smuggling gangs. However, European leaders remain divided on migration policy, with some calling for the UK to open more legal pathways for asylum-seekers. Other negotiations include easing trade restrictions on UK exports and a proposed youth mobility scheme. The EU wants the UK to comply with existing agreements before opening new negotiations, signalling that while cooperation may improve, trade-offs will be required on both sides.

Brexit has quietly resurfaced at the Labour Party conference, with Keir Starmer’s 'Brexit reset' plans taking centre stage. EU officials, alongside representatives from key European nations like Germany and France, have attended to explore potential new security and trade agreements. Central to these discussions is the EU’s push for a youth mobility scheme, allowing Europeans under 30 to live and work in the UK for up to four years. While Starmer has advocated stricter immigration controls, the EU is reportedly willing to compromise, offering shorter stays of two to three years to facilitate negotiations. Labour’s manifesto included proposals for a security and defence pact, a veterinary agreement to ease food and farming trade, and mutual recognition of professional qualifications. However, concerns remain over whether Labour has clearly defined objectives for the negotiations. The talks come amid broader tensions, with Labour’s grassroots pro-EU movement pushing for more engagement with Europe.

Sir Keir Starmer has emphasised that his government's intention to improve relations with the EU does not equate to reversing Brexit. Speaking alongside German chancellor Olaf Scholz in Berlin, Starmer highlighted the desire for a closer relationship with Europe, focusing on trade, defence, and economic growth, while ruling out rejoining the single market or customs union. The discussions also included plans for a treaty aimed at boosting cooperation between the UK and Germany, particularly in areas such as energy security and science. While the EU has proposed a youth mobility scheme to allow young people to study and work across borders, Starmer clarified that the UK has no plans to adopt such a scheme but is open to enhancing educational and cultural exchanges. The discussions were welcomed by some as a step towards mending UK-EU relations, while others expressed concerns or called for more ambitious efforts to rebuild ties with Europe.

A University of California study highlights the long-term damage caused by Brexit and austerity measures on the UK’s economic growth and social cohesion. The report calls for urgent action from the incoming government to address setbacks since the 2008 financial crisis. Political scandals, such as rule-breaking during the pandemic, have intensified public discontent and eroded trust in UK institutions. The study warns of interlocking crises for the next government, including signs of stagnation, particularly in addressing social and economic challenges. The report predicts a potential historic defeat for the Conservatives in the election and a challenging path for Labour to restore public trust and economic stability. Labour’s pledges include fiscal discipline, housing and infrastructure reforms, and clean energy investments. The study concludes that austerity and Brexit have left lasting scars on the UK economy, urging the government to prioritise regional planning and recovery.

UK farmers, feeling betrayed post-Brexit, have protested in London against trade deals and new regulations that jeopardise their livelihoods. The demonstrators, accompanied by tractors, converged on Parliament Square, voicing their distress over trade agreements that permit imports of lower-standard foods, undercutting local agriculture. Liz Webster, founder of Save British Farming, criticised the Government for securing 'the worst trade deals in the world’, leading to severe challenges for farmers. The Brexit transition has brought significant upheaval to the UK's agricultural sector, causing bureaucratic issues, exporting challenges, and a decrease in available labour due to reduced migrant workers. The pandemic worsened these effects. Despite initially supporting Brexit to escape the EU's Common Agricultural Policy, farmers now face intense competition from cheaper imports from countries like Australia and New Zealand. The protest also criticised misleading labels that allow non-UK products to bear the Union flag. A recent survey shows a majority in the UK now believe Brexit was economically detrimental, with few feeling personal or national benefits.

A new deal between the UK government and the Democratic Unionist Party (DUP) aims to restore power-sharing in Northern Ireland by reducing checks on goods moving from the UK to Northern Ireland. The deal, which could quickly lead to the return of devolution, is seen as a pivotal step in resolving tensions which arose from post-Brexit trade rules. NI secretary Chris Heaton-Harris praised the agreement, and DUP leader Sir Jeffrey Donaldson claimed it effectively removes the Irish Sea border for goods. The deal, endorsed by the DUP's executive, will be accompanied by legislation to reinforce NI's economic ties with the UK, and is expected to swiftly pass through Parliament. This development, a significant milestone in restoring local governance, addresses long-standing political and trade concerns in the region.

The upcoming Brexit rule changes, effective from 31 January, are expected to increase food prices in the UK. New regulations will require additional paperwork for EU businesses exporting animal and plant products to the UK, particularly affecting medium and high-risk foods. From April, physical checks will be implemented on these goods. In October, a broader range of items will be reclassified from low to medium risk, necessitating more paperwork. This reclassification will particularly impact fruit and vegetables, with an estimated £200 million added to import costs, likely to be passed on to consumers. Businesses transporting mixed consignments and local wholesalers may face significant impacts. The Government, while acknowledging potential price increases, suggests a negligible impact overall. These changes aim to protect the UK's biosecurity and support efficient trade.

France and Germany are pressuring Brussels to take the hardest possible line towards the next Tory leader over the Northern Ireland Protocol. Both Tory leadership candidates have pledged to press ahead and scrap goods checks between Great Britain and Northern Ireland. Brussels says the Northern Ireland Protocol bill is illegal and will retaliate with lawsuits and import tariffs to strategic UK exports. Senior EU sources said the bloc would prefer to restart talks with a fresh face rather than Liz Truss, who has been running the negotiations. Ms Truss initially adopted a conciliatory approach after taking over as the UK’s chief negotiator from combative Lord Frost. But her position has hardened recently as she became frustrated at the lack of movement in the talks. EU insiders believe she dropped her friendly approach when it became clear that Boris could be ousted over partygate.

Ireland’s foreign minister, Simon Coveney, has warned Boris Johnson against any move to change the Northern Ireland protocol. He said, ‘What we can’t do is accept that the British government would act unilaterally, they would pass legislation to effectively breach international law, to set aside elements of a treaty that this prime minister designed and put in place. That would cause more problems than it would solve.’  Foreign minister Liz Truss, announcing a new law to change the post-Brexit trade deal for Northern Ireland, insisted it would be legal under international law. She said the proposed legislation would make changes to the deal - rather than scrapping it - to resolve ‘the grave situation in Northern Ireland’. But in response, the EU said it would ‘need to respond with all measures at its disposal’ if the UK went ahead with the legislation. Pray that all decisions will be according to God’s plans.