Positive and Negative Effects of Brexit on Standards of Living in the UK

Positive and negative effects of
Brexit on standards of living in the
UK

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
Outlining positive & negative effects of BREXIT on UK’s economy..................................3
CONCLUSION..........................................................................................................................9
REFERENCES.........................................................................................................................10

INTRODUCTION
Economic Policy Analysis can be defined as a procedure to identify all the potential
policy alternatives that can solve problem and then comparing all options to choose the most
effective and feasible one. Now, ‘BREXIT is combination of two words, ‘Britain’ & ‘Exit’
which refers to withdrawal of UK from European Union (EU). The report will discuss and
evaluate all positive and negative effects of BREXIT in UK. There will be a significant
changes in UK’s relations with other European countries & also opportunities to develop new
relations with non-EU nations. EU is the largest trade partner of UK, therefore, the outcome
of such an action will shape country’s relationship with largest partner in trade.
Outlining positive & negative effects of BREXIT on UK’s economy
When the announcement was made regarding UK exiting EU, the value of pound in the
market rose by 0.47% against US dollar. However, it was already known in the market about
expected cost of BREXIT to British economy. In order to overcome the ill effects of Brexit
decision, longer is required by British economy (Portes, 2022). The current scenarios of
Covid-19 impacts along with restrictions on trade, it is very much difficult to identify and
analyse the effects of Brexit upon different sectors of economy.
There are various economic studies that shows the effects of Brexit on UK and its likely
impact on longer periods. Studies estimates the level of output in year 2030 post-Brexit &
pre-Brexit. All considerations like strength of trade, investment levels & inks between
countries and economic growth have been studied.
The European Union membership has reduced the cost of trade between UK and rest of
Europe, i.e. all trade tariffs have been removed within EU which allows free trade practices.
Such reductions in trade tariffs have led to increase in trade between UK and other EU
nations. It benefitted UK because customers’ had access to large variety of goods and
services at lower prices. Businesses also had an opportunity to new export facilities which
enhanced their sales and profit margin. With such trading options, it led to increase in output,
income & standard of living. UK suppliers are provided with funds £138,760 to Central
government in order to simplify and speed up the procurement process (Hobolt and et.al.,
2022). This measure will generate more opportunities for small businesses and social
enterprises.
Further, manufacturers of specialized Auto parts that rely on other regions for acquiring
other parts in finished products have more power to seek other alternatives for their products.