{"id":66389,"date":"2026-06-19T11:08:11","date_gmt":"2026-06-19T11:08:11","guid":{"rendered":"https:\/\/www.europesays.com\/britain\/66389\/"},"modified":"2026-06-19T11:08:11","modified_gmt":"2026-06-19T11:08:11","slug":"brexit-cost-revealed-as-uk-economy-took-6-hit-bank-of-england-data-shows","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/britain\/66389\/","title":{"rendered":"Brexit cost revealed as UK economy took 6% hit, Bank of England data shows"},"content":{"rendered":"\n

Brexit<\/a> has cost the UK economy<\/a> at least six per cent in lost growth, an analysis of Bank of England<\/a> (BoE) data shows \u2013 with external studies suggesting the true amount could be even higher.<\/p>\n

Economists<\/a> looked at ten years\u2019 worth of data and decisions from thousands of British firms, as well as the growth and economic factors that have occurred since the UK voted to leave. They also attempted to plot the path the nation might have taken if voters had opted to remain in the European Union.<\/p>\n

The consensus was a fall of six per cent from company data and an average of eight per cent when using five other analysis methods, reports BBC News.<\/p>\n

About half of the lost growth came from uncertainty following the vote, with the remainder due to increased costs and trade barriers.<\/p>\n

British professor Nick Bloom, from Stanford University, co-authored the study and concluded that \u201cin the case of Brexit, there was a substantial economic impact on the United Kingdom, but it arose gradually over the subsequent decade\u201d. Bloom noted the UK was growing fast prior to Brexit and could have partially kept pace with the US had the vote been to remain.<\/p>\n

\"The The economic impact of the vote to leave has been one of the key arguments from those calling for Britain to rejoin the bloc (AFP\/Getty) <\/p>\n

But some analysts have suggested the BoE data does not fully encapsulate certain factors, such as US tech outperformance or the energy price shock across Europe as a result of the Ukraine war.<\/p>\n

\u201cI think the level of activity and growth in the economy has been lower,\u201d governor Andrew Bailey<\/a> said recently. \u201cAnd the reason for that is that if you reduce the size of the markets that we trade with, so we reduce our export markets, then that does tend to have a negative impact on growth.\u201d He also added that the impact on financial services was \u201cnowhere near as detrimental as many people predicted at the time\u201d.<\/p>\n

While Bank of England data and economists were used for the study, the paper includes a disclaimer that the conclusions drawn are not necessarily those of the Bank.<\/p>\n

Analysis from AJ Bell shows that Brexit had several more tangible, individual impacts on the UK economy.<\/p>\n

Among them, head of personal finance Sarah Coles noted, was that the pound saw its biggest single-day drop for 30 years. That happened straight after the vote as traders sold out of the uncertainty, with the knock-on effect that travel for Brits was immediately more expensive.<\/p>\n

In addition, that made overseas goods and services more expensive from a pound perspective, so rising prices fed into rising inflation.<\/p>\n

Staff shortages caused rising hiring costs, smaller economic growth led to lower interest rates<\/a> which hit savers in the pocket and pushed more homeowners towards fixed-rate mortgage deals. And, as has been evidenced this year, those coming to the end of ultra-low interest mortgage deals and renewing into 4 and 5 per cent deals instead, saw a big extra monthly payment needed on their homes, further hampering available household spending power.<\/p>\n","protected":false},"excerpt":{"rendered":"Brexit has cost the UK economy at least six per cent in lost growth, an analysis of Bank…\n","protected":false},"author":2,"featured_media":66390,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[4],"tags":[1256,13361,157,6540,1469,31110,5,6],"class_list":["post-66389","post","type-post","status-publish","format-standard","has-post-thumbnail","category-uk","tag-bank-of-england","tag-boe","tag-brexit","tag-economic-growth","tag-european-union","tag-nick-bloom","tag-uk","tag-united-kingdom"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@UnitedKingdom\/116776462178567322","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/66389","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/comments?post=66389"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/66389\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media\/66390"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media?parent=66389"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/categories?post=66389"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/tags?post=66389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}