Nine years ago this week, the UK voted to leave the European Union. Reflecting on that momentous decision almost a decade back, Downtown in Business (DiB), one of the UK’s leading business organisations, has launched a scathing critique of the economic and political consequences of Brexit, describing it as “the greatest act of self-harm the UK has inflicted on itself in modern history.”
In a hard-hitting statement, DiB warns that Brexit has left businesses burdened with red tape, labour shortages, reduced investment, and slower growth, with city regions like Manchester, Birmingham, Liverpool, and Leeds bearing the brunt of the damage.
Frank McKenna, Group chair and chief executive of Downtown in Business, commented:
“Brexit was sold as an opportunity for growth and sovereignty, but the reality for the business community has been quite different. What we’ve seen is an economy saddled with bureaucracy, a shrinking pool of skilled workers, and city regions losing competitiveness on the global stage.”
The Office for Budget Responsibility estimates that Brexit has knocked 4% off the UK’s potential GDP—a larger long-term hit than either the financial crash or the COVID-19 pandemic.
Frank McKenna continued:
“Our members are ambitious, forward-looking companies who want to trade, hire, and grow. Instead, they are weighed down by customs barriers, labour shortages, and lost investment. The so-called ‘Brexit dividend’ has turned out to be a mirage. It’s time for a serious conversation about accelerating the rebuilding of our economic relationship with Europe.”
The organisation is calling for the government to build on the recent progress made at the UK/EU Summit by going further and faster to repair the UK’s relationship with the European Union, including:
- Agreements on mutual recognition of standards and qualifications.
- Sensible, flexible migration policies to address chronic skills shortages.
- Renewed cooperation on student exchanges, research, and security.
McKenna added:
“This isn’t about reversing Brexit, but about being honest about the damage it has done—and being pragmatic about how to fix it. Ignoring the world’s largest trading bloc on our doorstep is economically illiterate. We need leadership from government, and from business, to rebuild the bridges that Brexit burned.”