A bombshell report from the Centre for Policy Studies (CPS) has debunked claims that Brexit damaged the UK economy, showing that Britain has outpaced its European neighbours since leaving the European Union. The study warns that Labour's push to draw closer to the EU could undermine the country's growth prospects.
UK Growth Outstrips EU Counterparts
According to the CPS report, the UK economy has grown by 12.1% since the 2016 referendum and by 5.3% since formally leaving the EU in 2020. This growth rate exceeds that of France, Germany, and Italy – the UK's European G7 competitors. The findings directly contradict the narrative that Brexit has been economically harmful.
Leading economist Dr Gerard Lyons, who contributed to the report, argues that the UK's weaker GDP per capita is largely due to domestic policy failures rather than Brexit. He points to record net migration and an inability to execute pro-growth policies as key factors, both of which are under Westminster's control, not Brussels.
EU Reset Risks Tying UK to Slow-Growth Region
The CPS report warns that Sir Keir Starmer's ambition to reset relations with the EU could backfire. The EU's share of the global economy has declined from 15.5% in 2016 to 14.0% in 2025, and this trend is expected to continue. Closer ties with the EU would limit the UK's ability to strike trade deals with faster-growing regions, the report argues.
Dr Lyons stated: “Westminster cannot pass the buck to Brussels again. It needs to accept the responsibility and opportunity to deliver a pro-growth policy agenda.” He added that leaving the EU was an economic shock with a temporary, not permanent, impact on growth.
Post-Brexit Policies Key to Success
The report emphasises that the UK's domestic policy choices since leaving the EU have heavily influenced economic outcomes. Dr Lyons said: “The last decade has demonstrated that it was not just leaving the EU but the policies we adopted since we left that are key. Brexit changed the UK’s economic framework and our domestic policy choices have heavily impacted the outcome. The UK should use the freedoms available to it to deliver stronger growth and higher living standards, with Westminster focused on implementing a pro-growth strategy.”
The CPS argues that a sensible relationship with the EU is beneficial, but the UK should not tie its hands by refusing to use post-Brexit levers that can impact regulatory, trade, and growth policies. The report comes amid ongoing criticism of Starmer for allegedly trying to reverse Brexit since becoming Prime Minister in 2024.
