Brexit Regret: London Mayor Reveals £140 Billion Loss
London Mayor Sadiq Khan has laid bare the harsh economic toll Brexit regret has taken on the United Kingdom, citing a staggering loss of £140 billion ($178 billion). Urging the government to take swift action, Khan emphasizes the need to rebuild relations with the European Union to mitigate the ongoing decline.
Unravelling the Economic Fabric: 2 Million Jobs Lost
Research conducted by Cambridge Econometrics, commissioned by City Hall, unveils the profound consequences of Britain’s EU divorce. A whopping 2 million jobs have been lost nationwide. Moreover, 290,000 positions vanished in the bustling metropolis of London alone. Financial services and construction sectors bear the brunt, accounting for half of the total job losses.
A Plea for Rationality in the Face of Crisis
Khan, an outspoken critic of the “hard-line” version of Brexit, emphasizes the dire need for a mature approach to resolving the Brexit disaster. He also argues that openness to improving trading arrangements with European neighbours is crucial. That’s especially important when addressing the escalating cost of living and the economic downturn.
Divergent Views Within the Labour Party
While Khan echoes the sentiments of London’s predominantly Remain-voting population, a stark contrast emerges within the Labour Party. Party leader Keir Starmer, a remainer himself, treads cautiously ahead of an impending general election. He is seeking to win back Brexit-supporting voters who shifted allegiance to the Conservatives in 2019. Starmer maintains a more measured stance, asserting that there is “no case for rejoining the EU.”
A Shrunken Economy: Hard Numbers Speak Louder
Cambridge Econometrics showed the economic repercussions of Brexit, revealing that the UK economy is now 6% smaller than it would have been within the EU. Predictions for 2035 are even grimmer, with a projected £311 billion reduction in output, equivalent to a 10.1% hit. London’s economy, in particular, bears a £30 billion shortfall, contributing to an average Londoner being £3,400 worse off in 2023.
Khan’s Call to Action
Armed with this damning evidence, Khan makes a compelling case for addressing London’s post-Brexit labour shortages. He advocates for a migration approach “informed by evidence, not prejudice,” and emphasizes the urgency of forging new arrangements with the EU. Moreover, he contends that a closer relationship with the European Union is not only essential for turbocharging the economy but also for raising living standards and unlocking much-needed growth and prosperity.
