Brexit's Impact on the Economy of England

This project discusses the economic problem faced by England due to Brexit. It provides a detailed analysis of the impact of Brexit on the economy, including statistics and facts. It also explores the role of the government in managing the consequences of Brexit.

BUSINESS ECONOMICS

EXECUTIVE SUMMARY
It can be summarized that Brexit is the economic problem which impacts the various economic
sectors in England. Brexit refers to the exit of UK from the European Union which shall be
impacting the business arena. The project shall include a detailed analysis of the economic
problem of Brexit. It shall also demonstrate the various facts and figures from all the relevant
sources that shall depict the impact the policy of Brexit on the economy of England. It shall also
critically analyse the impact of such policies on the success of the businesses in terms of
profitability and the growth prospects. It shall also explain the role played by the government
amidst the application of Brexit policy in UK.

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Brexit in England.........................................................................................................................1
Economic Context .......................................................................................................................1
Role of Government.....................................................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
The project shall be highlighting the economic problem as posed in England with the application
of the Brexit policy. The project report shall be reflecting in detail about the concept of Brexit
and its impact shall be studied on the various economic sectors in England. It shall be depicting
the relevant statistics to justify the impact caused on the businesses and the economic growth by
the exit of UK from the European Union. Lastly it shall be covering the role that is played by the
government in order to make the businesses successful amidst such policy being applied to the
country.
MAIN BODY
Brexit in England
The Brexit policy of England refers to the exit of UK from the European Union. The
decision was taken in June 2016 and it came into process from 31st January 2020. the deal took
long time to be formed which says that the trade taking place between the UK and EU shall be
imposed to no tariff charged across borders (Baines, Brewer and Kay, 2020). The trade was free
and eased between the two but the custom checks were still there. The deal has somehow
complicated the commerce between UK and EU as compared to when UK was member of EU.
Brexit has severely impacted UK's growth, trade and the job sector and the economies of Ireland,
London and Scotland (Cairney and et.al. 2019). It lead to slowing down of the economy of UK
and with that the growth prospects of the country also got severely affected due to the
uncertainties in the agreement. The trade agreement took long time to be formulated and later it
was known that the trade shall be free and no tariffs to be charged. Another thing that was
uncertain was regarding the immigration.
The prominent issue was regarding trade and so the business operations also got highly affected
as by this separation the tax was to be imposed on the buying and selling activities which shall
increase the costs for the businesses (Dupont and Moore, 2019).
Britain's younger workers shall suffer the unemployment as the jobs now shall not be readily
available to the employees. Equally, the difficulties are also faced by the employers to find the
prospective candidates suitable for the job.
Economic Context
Brexit's lead to the decision made by UK to leave the European unions. Brexit formally started
on 23 June 2016 The England has already suffered from the Brexit. The system has drawn-out
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and many business sick from their business enterprise to EU (Esmail, Panagioti and
Kontopantelis, 2017). There are many factors that have been impacted due to the Brexit.
Growth
Growth of the economy of England have been harmful Impacted due to this situation and
this pass off due to the unfavourable situation that has been made in economy's circumstances.
Its economic growth has been down or declined from 2.4% 2015 to 1.3% in 2018 and now in
2020 it has been more declined from 1.3% to -11.3%. This has been due to the Brexit. The
government of England computation that there is almost fall down of 8-9% which had badly
affected the business of UK nation. As the Money flow has been slow down due to lack of
opportunities available in the market for carrying business forward.
Trade
Brexit has made the trade platform challenging for small business as the cost of export
got increased as the in European Union the goods and services of UK became more expensive as
compared to before. The pain made situation for UK came when higher import value can create
the inflation and lower prices can create the lower standard living of England residence. Due to
this the UK country England can lose the Bidding capacity in EU country for any public contract
and in banking sector the England also go through a lot at that time.
The effect of Brexit on England:
Hard Brexit Soft Brexit
Benefits of fiscal 0.31 0.09
Effects of trade -2.92 -1.37
Total change -2.61 -1.28
Unilateral liberalization 0.32 0.3
Total Walfare change -2.29 -0.98
From the above data it can be interpreted that the soft Brexit is favoured by remain supporters
and hard Brexit is supported by those who left. UK can specially access to individual market but
have to leave the benefit of public contracts. So in the above table shows that soft Brexit
outcome in that it would be hard for UK country to sign its new trade deal (Dhingra and et.al.,
2016.). The table shows that soft Brexit can help to remain the trade tariff to be zero Hard Brexit
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represents That UK will get more power to control its across boarder trade (Begg and Mushövel,
2016). Hard tariff assumes that UK and Eu will impose most favourable tariffs on each other.
Jobs
The jobs of younger worker have been affected unfavourable affected by the Brexit as
the market and industry of several goods have been reduced due to Brexit. Availability of low
skilled and mid skilled workers become shorter as compared to before for employers.
All these factors are very badly impacted through this position which have been improved with
the time. A simple way to measure the mechanics consequences of the Brexit is that After Brexit
the united kingdom country England would be the free sicker to trade opportunities in whole
world.
From the graph it can also seen that job seeker from the Brexit period has increased as compared
to previous time. Before it was lower than 20% and it has increased from that % to 30 % and
currently it's been around 20% which is showing that the Brexit situation has impacted both the
positive and negative ways.
Foreign Direct Investment
FDI has been affected by the Brexit as it has been diffractive place after the European
country have been apart from UK. So the England's businesses have also suffered from the lack
of capital for carrying out the business strategies and it resulted into less export and lack of
foreign exchange reserve. This is because EU have allowed the foreign bank to sell their services
anywhere in the country. It can be interpreted from it that England's growth has been declined
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from this situation it has resulted into lack of resources for business to conduct its daily activity
even if it has the access to all market after the Brexit.
From the above statistical data it can be interpreted that the England UK country have suffered a
lot from the situation of Brexit but it has overcome in 2020 by taking important majors to
improve its economic condition like GDP from -11.3% to 2.23 trillion and employment
generation rate is 76.6% which has been improved from previous year.
Role of Government
The parliament of the country has played major role in making the negotiations in the Brexit
policy. Both the houses of the parliament have played huge role in organizing the structures and
scrutinizing the legislations of the European Union. The parliament made the keen decisions and
hold the government to account for it. From the process of selecting the committee to the
coordination of the various activities. It has played key role from the passing on 23rd June to its
application on 31st January, 2020 (Marsh, 2018).
The trade agreement was formed with prudence so that no loss is undertaken by the companies of
UK. The agreement relieved the burden of tax on the trade between UK and European Union
across the borders (Meislova, 2019). Proper job opportunities were created for its citizens who
were unemployed.
It is also suggested that a joint committee shall be made of both the houses of the parliament so
that they dont lack in the strategic and political intent (Oppermann, Beasley and Kaarbo, 2020).
The government of the company have decided to work on the policy areas that were earlier
covered under the European Union membership. It is the role and responsibility of the
government to improvise the conditions of the economy as due to the uncertainties of this policy
the economy of UK is facing lot of shortcomings. The business, employment, future growth are
all at stake so the government has to revive the economy back from the crisis by taking certain
decisions and measures.
CONCLUSION
This project shall be discussing the economic problem that is faced by England. Brexit's policy
which is undertaken is causing issues in the various sectors of economy of England. The projects
explains the details of the policy undertaken and in depth study of its impact. Brexit is the
withdrawal of UK from the European Union and the trade agreement between them. The major
impact of this policy can be witnessed on the business and trade sector where the statistics from
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the viable sources shall be taken so that the impact could be analysed in terms of profitability,
growth and the jobs sector. Also, the report shall be including the role that is played by the
government, parliament in respect of the impacts of Brexit on the economy. The various
measures taken to cure the economy and regain its sound performance.
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REFERENCES
Books and Journals
Baines, D., Brewer, S. and Kay, A., 2020. Political, process and programme failures in the
Brexit fiasco: exploring the role of policy deception. Journal of European Public
Policy. 27(5). pp.742-760.
Begg, I. and Mushövel, F., 2016. The economic impact of Brexit: jobs, growth and the public
finances.
Cairney, P. and et.al. 2019. How to conceptualise energy law and policy for an interdisciplinary
audience: The case of post-Brexit UK. Energy Policy. 129. pp.459-466.
Dhingra, S. and et.al., 2016. The impact of Brexit on foreign investment in the UK. BREXIT
2016. 24(2).
Dupont, C. and Moore, B., 2019. Brexit and the EU in global climate governance. Politics and
Governance. 7(3). pp.51-61.
Esmail, A., Panagioti, M. and Kontopantelis, E., 2017. The potential impact of Brexit and
immigration policies on the GP workforce in England: a cross-sectional observational
study of GP qualification region and the characteristics of the areas and population they
served inSeptember 2016. BMC medicine. 15(1). p.191.
Marsh, D., 2018. Brexit and the politics of truth. British Politics. 13(1). pp.79-89.
Meislova, M. B., 2019. The European Parliament in the Brexit process: Leading role, supporting
role or just a small cameo?. In Brexit and democracy (pp. 235-261). Palgrave
Macmillan, Cham.
Oppermann, K., Beasley, R. and Kaarbo, J., 2020. British foreign policy after Brexit: Losing
Europe and finding a role. International Relations. 34(2). pp.133-156.
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