UK Exports Drop £27 Billion Post-Brexit

A report from the Centre for Economic Performance at the London School of Economics reveals that Brexit has led to a £27 billion drop in UK exports to the EU, representing a 6.4% decline in global exports and a 3.1% fall in imports. The research highlights that smaller firms were disproportionately affected, with a 30% reduction in export value for the smallest businesses, while larger firms managed to adapt better, showing no significant impact. Approximately 16,400 firms ceased exporting to the EU entirely after the Trade and Cooperation Agreement (TCA) came into effect in January 2021. Despite the challenges, the report notes that UK services exports have remained strong, contributing to a £40 billion trade surplus this year. The findings underscore that while overall trade has been disrupted, the largest firms' performance has masked the severity of the decline for smaller companies. As negotiations for a Brexit deal reset loom, the government faces pressure to address the regulatory barriers that have emerged since the UK's exit from the single market and customs union.