Ten years on from the referendum, Brexit still shapes British politics. It has smashed the two-party duopoly and continues to divide the country. Keir Starmer\u2019s struggle to remain prime minister after last week\u2019s drubbing for Labour in elections in England, Scotland and Wales is proof of that.<\/p>\n
Voters took politicians at their word after the decision was made to leave the EU. The reason \u201cTake back control\u201d worked as a slogan was that it chimed with the public mood in large parts of Britain.<\/p>\n
For years it had been clear that the UK\u2019s economic model was only working for the better-off parts of the country. Globalisation might be bringing rich rewards to London and the south-east, but it isn\u2019t to towns in the north hollowed out by deindustrialisation and austerity.<\/p>\n
But taking back control also meant Britain could no longer use the EU as a reason for passivity. Politicians had become well versed in using Europe as an excuse for inactivity, but after Brexit<\/a> this line of argument no longer washed.<\/p>\n The UK had to solve its own problems. It was no longer bound to adopt EU regulations. It could set its own trade policy. It could, if it chose, follow the example of east Asian economies and systematically rebuild manufacturing using tariffs, subsidies, government procurement and capital controls. But if the freedoms were not used, then nothing would change. And if nothing changed, politicians at Westminster would feel the full force of the public\u2019s anger. There could be no hiding behind Brussels any more.<\/p>\n Ironically, the one sector that has benefited from Brexit freedoms has been financial services<\/a>, in which both the previous chancellor, Jeremy Hunt, and current one, Rachel Reeves, have adopted a lighter-touch regulatory regime<\/a>. Governments have had a clear strategy for this already powerful bit of the economy, and that strategy has worked. The City is thriving.<\/p>\n But that\u2019s the exception. Voters young, middle-aged and old think their government should be doing more for them after a period of flatlining living standards<\/a> stretching back almost two decades. In all parts of the UK, from London to the north of Scotland, they have reached the conclusion that neither Labour nor the Conservatives are up to the job. Neither party has convinced voters that they have a plan for getting Britain out of its mess.<\/p>\n Punishment has been swift and brutal. The Tories won a landslide victory in 2019 and then suffered a record defeat in 2024. Less than two years after winning a landslide of its own, Labour\u2019s massive losses<\/a> last week were the consequence of a government being squeezed by the Green party to the left and Reform UK to the right.<\/p>\n Pro-Brexit flags flying from a fishing boat moored in Ramsgate, Kent, June 2016. Photograph: Chris J Ratcliffe\/AFP\/Getty Images<\/p>\n The Greens and Reform are like chalk and cheese, but one thing going for both parties is that they are untainted by failure. The Greens did well in the parts of the country that voted strongly for Remain in the referendum, while Reform UK cleaned up in Brexit-voting areas.<\/p>\n Those angling for Starmer\u2019s job need to be aware that things are likely to get worse for Labour<\/a> as the full impact of the wars in Iran and Lebanon are felt. Over the coming months, growth will slow and inflation will rise. Living standards will come under renewed pressure as the costs of energy and food rise.<\/p>\n