Labour has promised to dismantle existing trade barriers with the European Union following new research that reveals Brexit is costing UK businesses approximately £37 billion per year.
According to an analysis conducted by the House of Commons library, trade between the UK and EU nations has decreased by 5% compared with pre-Brexit levels.
The report was commissioned by SNP MP Stephen Gethins, who expressed alarm at the scale of the economic damage and called it "appalling."
Douglas Alexander, Labour’s trade minister, criticised the Brexit deal secured by the Conservatives, arguing it hampers UK businesses and restricts economic growth. Alexander affirmed Labour's commitment to enhancing trade relationships with the EU to facilitate increased economic opportunities for British companies.
Alexander described the current scenario as a clear indication of how the Conservative approach had disadvantaged the UK economy.
Stephen Gethins further criticised the government’s management of Brexit, attributing the economic losses to what he termed a "hard Tory Brexit."
He asserted that the government’s decisions continued to negatively impact businesses and households across the UK. The SNP MP also accused the Conservative Party of ignoring the evidence and maintaining policies that have consistently undermined economic stability.
Labour’s pledge comes amid ongoing discussions about the long-term economic effects of Brexit on various sectors, particularly agriculture, food production, and retail trade.
Businesses in these sectors, already facing challenges related to inflation and workforce shortages, have repeatedly urged policymakers to revisit trade agreements to reduce burdensome regulations and barriers.
With Labour's stance gaining momentum, UK businesses will be closely observing potential policy shifts ahead of the next general election.
Labour insists that tackling these trade issues head-on is crucial to rebuilding the UK's economic relationship with the EU and stimulating domestic growth.
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