It may be now five years since the United Kingdom left the European Union, but recently revealed statistics have shown that there are still groups of people who have been adversely affected in society. These include migrants, small businesses, young people and poorer households. These new findings have recently been released by the London School of Economics and Political Science.
A post Brexit audit which was authored by Iain Begg, Professorial Research Fellow at the European institute, LSE has revealed that there have been many social and governance challenges which have been faced by people on both sides of the English Channel. These have been largely evident since the UK’s exit in 2020 and have mainly been seen by the price of many products and services rising uncontrollably.
Brexit is generally seen to have had a negative economic effect on both the UK and the EU but with the UK having taken a greater hit. Estimates of the size of this impact are largely contested and there has been a succession of economic crisis’ due to events including the pandemic and the rising cost of living which have made it hard to be precise.
However, Begg’s analysis suggests new trade deals secured by the UK with Australia, New Zealand, and India have proven inconsequential in patching up the impact of Brexit on trade with the EU.
The higher cost of food imports to Britain has had a direct impact on consumers. Poorer households have been affected in particular, due to food and other necessities typically constituting a larger share of their household budgets.
Social relationships within households have also been impacted, with familial tensions arising where one member is an EU national and the other is a UK citizen, for example around whether to apply for ‘settled status’.
Highlights were also made to the research so that people could see how the Brexit referendum linked to the subsequent worsening of mental health among people between the ages of 31-46 years old. This was mostly among men and highly educated individuals.
In terms of governance, the UK’s ability to escape an ‘over-bearing Brussels’ and chart a new regulatory trajectory was a key selling point for Brexiteers. However, the UK has since transferred many EU regulations into national law.
A policy of dynamic alignment, in which the UK would broadly follow changes in EU regulations, is proving a controversial pathway. Begg says the tension is felt especially in Northern Ireland, where Unionists perceive a risk of undermining the Union if there is a substantial regulatory divergence with Great Britain.
UK poverty data from the Joseph Rowntree Foundation show that even before adding Brexit effects, millions of people were already in poverty or just above the poverty line. When you put that alongside Brexit-linked food price rises, weaker wage growth and slower regional economies, the pressure on poorer households is compounded.
Several studies show the Brexit referendum had emotional and psychological effects on some parts of the population. One major longitudinal study found higher levels of mental distress after the referendum, especially among younger men, people living in Remain-voting areas, and highly educated groups. This suggests Brexit had social and psychological impacts alongside the economic ones.
Since Brexit, the UK economy has experienced challenges, including reduced trade with the EU, but has also seen a return to business investment growth. Other significant effects include changes in migration patterns and the end of free movement with the EU, although the precise impact is hard to separate from other global factors like the COVID-19 pandemic and the conflict in Ukraine. It has also been linked to labour shortages which have exasperated inflationary pressures.
