London (The Palestine Telegraph Newspaper) – 1 February 2026 –
UK Prime Minister Keir Starmer stated that Brexit inflicted significant damage
on the British economy as he prepared for a key meeting with European Union
leaders. The comments, made ahead of negotiations aimed at resetting
post-Brexit relations, underscored ongoing tensions over trade and regulatory
alignment.
Reports from multiple outlets detailed Starmer's position
amid efforts to improve economic ties with the EU.
Prime Minister Keir Starmer delivered the remarks during a
speech and interviews on 1 February 2026, emphasising that leaving the EuropeanUnion had led to reduced growth and higher costs for businesses. He highlighted
specific impacts such as barriers to trade, increased bureaucracy for exporters,
and a shortfall in economic performance compared to projections if the UK had
remained in the bloc.
According to statements attributed to Starmer, the UK
economy is approximately 4% smaller than it would have been without Brexit,
based on analyses cited in his address.
The timing of the comments coincided with preparations for
an upcoming EU summit, where Starmer is scheduled to meet with European
Commission President Ursula von der Leyen and other leaders. Discussions are
expected to cover potential easements in trade rules, veterinary agreements,
and youth mobility schemes. Starmer's office confirmed that the government
seeks a "pragmatic reset" without rejoining the single market or
customs union.
Starmer's Direct Statements on Brexit's Economic Toll
In an interview with The Telegraph published on 1 February
2026, Starmer explicitly said, "Brexit damaged our economy. That is a
fact." He pointed to data from the Office for Budget Responsibility (OBR)
and other economic bodies indicating long-term drags on productivity and
investment. Starmer argued that these effects have compounded challenges from
global events, including the COVID-19 pandemic and energy crises.
The Prime Minister referenced forecasts showing that
Brexit-related trade frictions have cost the UK up to £100 billion annually in
lost output. He noted disruptions in sectors like automotive manufacturing,
fisheries, and financial services, where non-tariff barriers have increased
compliance costs. Starmer stressed that acknowledging these impacts is
essential for negotiating better terms with the EU.
Government sources clarified that Starmer's position aligns
with Treasury assessments, which project a 4% hit to potential GDP over the
long term. These figures stem from models accounting for reduced trade volumes
post-2021, when the UK fully exited the EU's trading arrangements. The comments
drew immediate responses from opposition figures, though Starmer maintained
focus on forward-looking diplomacy.
Context of the Upcoming EU Meeting
The EU summit, tentatively set for mid-February 2026,
follows a series of bilateral talks initiated after Labour's election victory
in 2024. Agenda items include revisiting the Windsor Framework for Northern
Ireland and exploring mutual recognition of professional qualifications. EU
diplomats indicated willingness to discuss limited flexibilities, provided the
UK aligns more closely on issues like carbon border taxes.
Starmer's pre-meeting remarks were part of a broader
communications strategy, including speeches to business leaders in London and
Brussels. He reiterated commitments to defence cooperation and security pacts,
areas where post-Brexit collaboration has strengthened. However, trade remains
the sticking point, with EU officials insisting on level playing field
guarantees.
Preparatory documents from Downing Street outlined
priorities such as reducing food export checks and simplifying customs
declarations. These measures aim to address complaints from UK farmers and
manufacturers about paperwork burdens introduced under the Trade and
Cooperation Agreement (TCA). The Prime Minister's team emphasised that
improvements would be reciprocal, benefiting both sides.
Economic Data Underpinning Starmer's Claims
Multiple reports corroborated Starmer's citations of
economic studies. The London School of Economics estimated in 2025 that Brexit
has reduced UK trade with the EU by 15% compared to pre-referendum trends.
Similarly, a Bank of England analysis from late 2025 quantified non-tariff
barriers as equivalent to a 6% tariff on goods trade.
OBR forecasts, updated in January 2026, incorporated Brexit
permanently into baseline projections, shaving 4% off medium-term GDP growth.
These models factor in lower foreign direct investment, skilled labour
shortages, and supply chain disruptions. Starmer quoted these in his speech,
noting that real wages have stagnated partly due to these dynamics.
Sector-specific impacts were detailed in industry reports.
The Society of Motor Manufacturers and Traders reported a 10% drop in EU
exports since 2021, while the Fresh Produce Association highlighted doubled
inspection costs for horticultural goods. Financial services firms cited
passporting losses, prompting relocations to Dublin and Frankfurt.
Political Reactions and Historical Background
Conservative Party leader Kemi Badenoch responded on 1 February
2026, calling Starmer's comments "Brexit denialism" and defending the
2016 referendum outcome. She argued that global factors, not Brexit alone,
explain economic pressures, pointing to comparable slowdowns in non-EU peers
like Canada. Labour dismissed the rebuttal as out of touch with business
realities.
The remarks revive debates from the 2016 referendum, where
Leave campaigners promised £350 million weekly for the NHS from EU
contributions. Post-Brexit realities included the end of freedom of movement,
prompting labour shortages in hospitality and agriculture. Starmer, who
campaigned for Remain, has since positioned his government as pragmatic
Brexiteers.
Previous negotiations under Boris Johnson yielded the TCA in
2020, averting no-deal tariffs but introducing customs checks. Liz Truss's 2022
protocol bill strained relations, resolved partially by Rishi Sunak's Windsor
deal. Starmer's approach builds on this, seeking incremental gains without
sovereignty concessions.
Broader Implications for UK-EU Relations
Stakeholders across Europe welcomed the dialogue. German
Chancellor Olaf Scholz expressed support for closer ties in a statement on 1
February 2026, emphasising mutual benefits in green energy and AI regulation.
French President Emmanuel Macron cautioned against cherry-picking, insisting on
indivisible rules.
Business groups like the Confederation of British Industry
urged swift action on trade barriers, estimating £7 billion in annual savings
from sanitary and phytosanitary alignments. The Road Haulage Association
highlighted driver shortages exacerbated by cabotage limits. Youth advocates
pushed for Erasmus+ revival, though Starmer prioritised skilled migration
routes.
As preparations continue, Number 10 sources indicated
optimism for progress, with civil servants modelling scenarios for a "new
chapter." The EU's chief negotiator, Maroš Šefčovič, scheduled virtual
talks for early the following week. Observers noted that momentum hinges on
Starmer's ability to navigate domestic Brexiteers while advancing economic
priorities.
Detailed Sectoral Impacts Reported
In manufacturing, Jaguar Land Rover reported 20% higher
logistics costs to the EU, prompting production shifts. Seafood exporters faced
sanitary checks delaying perishable goods by days. Chemicals giant Ineos cited
regulatory divergence costing millions in compliance.
Services, comprising 80% of UK GDP, suffered from ending
EU-wide financial passports. Over 7,000 jobs moved continentally by 2025, per
CityUK data. Creative industries lost co-production funding, though bilateral
deals with individual states emerged.
Northern Ireland's protocol implementation continues, with grace periods extended for certain goods. Stormont executives reported stabilised supply chains but ongoing east-west frictions. Starmer pledged full Stormont restoration as a negotiation cornerstone