Five years on: how has Brexit changed the UK?

The United Kingdom remained trading for 11 months after leaving the EU in a single market and custom unions to keep trade flowing.

Northern Ireland had separate arrangements agreed.

Brexit proved to be a significant source of division, both in the political arena and within society at large, as it became the focal point of political discourse, with discussions regarding its consequences continuing for several years.

So how has the United Kingdom changed over the five years?

Brexit has had a huge impact on the trading sector.

The United Kingdom successfully negotiated a free trade agreement with the European Union, thereby preventing the imposition of tariffs or taxes on the import and export of goods.

Since UK has left the EU, UK good’s trade has been affected negatively.

The adverse effects arise from what are referred to as “non-tariff barriers,” which involve lengthy and often complex documentation that companies must complete when engaging in import and export activities with the European Union.

Recent research indicates that the exports of goods from the UK are approximately 30% lower than they would have been had the country remained within the single market and customs union.

The Office for Budget Responsibility (OBR), which serves as the government’s independent official forecaster, continues to operate under the assumption that Brexit will lead to a long-term decline in both exports and imports of goods and services by 15% compared to what would have occurred otherwise. This perspective has been maintained since 2016, encompassing the period of the previous administration.

OBR also operates under the assumption that the decline in trade, compared to what would have occurred otherwise, will lead to a long-term reduction in the size of the UK economy by approximately 4%. This is estimated to be around £100 billion in current monetary terms.

Travel has been made more difficult, as the freedom of travel ended with Brexit.

British passport holders are no longer permitted to utilise the “EU/EEA/CH” lanes at border crossings within the European Union.

However, individuals can still travel to the EU for tourism purposes for a duration of up to 90 days within any 180-day time frame without the need for a visa, as long as their passports have a minimum of three months’ validity remaining at the time of their return.

EU citizens can stay up to six months in the UK, however after the six months they must apply for a visa.

Changes are planned in 2025, for a new electronic Entry Exit System (EES) allowing travellers from non-EU countries enter and exit more easier without needing a passport stamp.

EES process will document the individual’s name, the category of travel document, biometric information (including fingerprints and facial images), as well as the date and location of entry and exit.

Whereas, the European Union has announced the implementation of a new European Travel Information and Authorization System (ETIAS) for external travellers. Citizens of the United Kingdom will be required to secure ETIAS approval prior to traveling to 30 European nations.

The cost of ETIAS clearance will be €7 (£5.90) and will remain valid for a maximum of three years or until the expiration of the individual’s passport, whichever occurs first. In the event that a person obtains a new passport, it will be necessary for them to apply for a new ETIAS travel authorization.

The United Kingdom is set to implement its version of ETIAS for EU citizens starting on 2 April 2025, with the exception of Irish citizens who will not be required to obtain it. This UK permit, referred to as the Electronic Travel Authorisation (ETA), will have a fee of £16.

One influential factor of Brexit was migration.

There has been a significant decline in immigration to the EU and in net migration (the difference between immigration and emigration) from outside the EU since the referendum, with this trend intensifying after 2020 as a result of the cessation of freedom of movement.

In January 2021, the immigration system came into force.

Since then, EU and non-EU citizens have to get work visa’s to work in the UK.

The financial circumstances worsened in the UK,  universities began to increase their recruitment of non-EU international students to improve the financial circumstances.

The UK can make their own laws without restriction from the EU, which was promised by campaign referendum.

As per the most recent government tally, there exist 6,901 distinct items of retained EU legislation pertaining to various matters such as working hours, equal remuneration, food labelling, and environmental regulations.

In May 2023, Kemi Badenoch, who was serving as the Trade Secretary at that time, declared that only 600 EU regulations would be eliminated by the conclusion of 2023, with an additional 500 laws pertaining to financial services scheduled for removal thereafter.

Brexit has provided the United Kingdom with increased autonomy in specific aspects of tax legislation.

The financial contributions made by the United Kingdom to the European Union became a contentious issue during the 2016 referendum, especially highlighted by the Leave campaign’s assertion that the UK was transferring £350 million to Brussels on a weekly basis.

In the financial year 2019-20, which marked the last year before Brexit, the United Kingdom’s gross public sector contribution to the EU Budget amounted to £18.3 billion. This figure translates to approximately £352 million on a weekly basis, as reported by the Treasury and external sources.

The United Kingdom continues to fulfill its financial obligations to the European Union as stipulated in the official Brexit Withdrawal Agreement. According to the Treasury, the UK disbursed a net total of £14.9 billion from 2021 to 2023. Furthermore, it is projected that an additional £6.4 billion will be required from 2024 onwards, although this amount will be distributed over several years.