Brexit was ‘act of self-harm’ says Mersey business leader

Nine years ago this week the UK voted to leave the European Union and Downtown in Business chief executive Frank McKenna claims Liverpool city region businesses have paid a heavy cost. Tony McDonough reports

brexit, freedom of movement
Britain voted to leave the EU in 2016 in a referendum

 

Downtown in Business (DiB) chief executive Frank McKenna claims Brexit was the “greatest act of self-harm the UK has inflicted on itself in modern history”.

Nine years ago this week the British public voted in a referendum to leave the European Union (EU) in a 52-48% outcome. However, Frank has launched a scathing critique of the economic and political consequences of the decision.

DiB, a Liverpool-based networking and lobby group that operates across the UK, claims that Brexit has left businesses burdened with red tape, labour shortages, reduced investment, and slower growth.

Frank says city regions such as Liverpool, Manchester, Birmingham and Leeds have paid a heavy price ever since. He examined: “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
Downtown in Business chief executive, Frank McKenna. Picture by Tony McDonough

 

“Our members are ambitious, forward-looking companies who want to trade, hire, and grow,” added Frank. “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.”

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DiB 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.

Frank said: “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.”

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