The UK is forfeiting up to £100 million every week due to delays in finalising a crucial post-Brexit trade agreement with the European Union, according to fresh parliamentary analysis. The research has intensified pressure on Prime Minister Sir Keir Starmer's government to accelerate negotiations and break what critics term a Brexit economic 'doom loop'.
The Stalled Sanitary and Phytosanitary Agreement
Despite a high-profile 'reset' announced by Sir Keir and European Commission President Ursula von der Leyen in May 2025, a pivotal strand concerning food and drink exports remains unresolved. This sanitary and phytosanitary (SPS) agreement is designed to align UK standards with those of the EU, which would eliminate the need for the majority of costly certificates and checks on animals and plants crossing the Channel.
Research commissioned from the House of Commons Library concludes that once fully implemented, the deal could be worth as much as £14 million per day to the British economy. The report notes this figure could fluctuate depending on seasonal trade variations, weekends, and bank holidays.
Political Recriminations and Economic Costs
The Liberal Democrats, who commissioned the analysis, have launched a sharp critique of the government's pace. Al Pinkerton, the party's Europe spokesman, stated: "The government went to great lengths to show off their shiny new plans... Six months later there's nothing to show for it and the British public are millions of pounds worse off a day because of their inaction." He urged ministers to "stop dithering" and deliver the promised deal to cut red tape.
A government spokesperson hit back, defending the "landmark deal" secured in May and criticising opposition parties. "It's a shame the Lib Dems aren't backing this progress or supporting the government as negotiations continue," the spokesperson said. Government insiders indicated that substantive talks only began once the EU's 27 member states agreed a unified negotiating mandate in late November.
The Broader Brexit Trade Backdrop
The urgency for a deal is underscored by stark wider data on post-Brexit trade. Earlier figures revealed that Brexit cost UK businesses £37 billion in the year to September 2024, with total trade with the EU remaining 5% lower than before the UK's departure. A London School of Economics study estimated that approximately 16,400 UK exporters (14%) have ceased selling to the EU due to the new trade rules.
The current system burdens businesses with expensive requirements, including Export Health Certificates that can cost £200 per consignment. Retail giant Marks & Spencer has previously highlighted the administrative burden, revealing it had to rent an extra warehouse solely to store Brexit-related paperwork.
Ministers believe the SPS agreement could boost UK exports of major agricultural goods to the EU by 16% and increase imports by 8%, delivering savings to businesses of up to £1 million monthly. Naomi Smith, chief executive of the pro-EU campaign group Best for Britain, argued the economic impact of Brexit affects people "every single day", compounding the cost of living and sluggish growth.
As negotiations continue behind the scenes, the political and economic imperative to finalise an agreement that eases cross-Channel trade friction grows ever more pressing.
