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Implications of the UK's decision to leave the EU

Financial benefits

There were arguments that leaving the EU would mean that the UK would save money that they would have been obliged to pay as a member. In some cases, this money was used to fund policies that the UK did not benefit from – for example the Common Agricultural Policy (CAP).

However, the EU does provide a financial safety net for all of its members. In addition, there is an opportunity to trade with other member states at a reduced rate and with fewer checks or restrictions. This can save millions each year.

Immigration

It was argued that the EU’s open borders put pressure on the UK’s services such as the NHS. The NHS costs the UK taxpayer billions per year.

On the other hand, as members of the EU, UK citizens also benefitted from freedom of movement. In addition, many of those who come to the UK from EU countries will benefit the UK economy each year.

Trade

Pro-EU commentators argued that the UK benefits from EU membership due to the single market. Membership of the single market means that trade can take place between member states without any tariffs (charges) as they share the same trading laws. Leaving the EU meant that trade barriers were erected which has added to costs for companies moving goods between the UK and Europe.

This has had a particular impact on Northern Ireland as it shares a land border with the Republic of Ireland, an EU country.

In 1998 the Good Friday Agreement was signed to help bring an end to conflict in Northern Ireland. It states that there should not be a ‘hard border’ between Northern Ireland and the Republic of Ireland. However Brexit means that customs checks are now needed on goods moving between the UK and EU.

The section of the Brexit deal known as the "Northern Ireland Protocol" was designed to protect the peace process by avoiding the need for checks on the border with Ireland. But it also means that some European laws continue to apply in Northern Ireland, with the result that Northern Ireland is being treated differently from the rest of the UK.

England, Wales, and Scotland are now seeing the effects of leaving the EU through trade. In summer 2021, Nando’s, McDonalds and KFC were all affected by food shortages and had to close restaurants. This was attributed to a lack of Heavy Goods Vehicle drivers causing supply issues, partly due to staff isolating as a result of Covid restrictions but also partly due to Brexit, as many EU nationals did not return to work in Britain after Covid-19 lockdowns.

The Annual Population Survey produced by the Office for National Statistics (ONS) estimates that there were 16,000 fewer EU nationals working as HGV drivers in the year ending March 2021, than in the previous year. Even before Covid, the overall estimated shortage was about 60,000 drivers.

Sovereignty

Now that the UK has left the EU, it has been argued that we now have greater powers over issues that affect life here. For example, the UK can now set its own policies on farming and fishing instead of having to be part of the Common Agricultural Policy and the Common Fisheries Policy.

However, there are many EU laws that UK citizens benefit from, including employment laws and social protections. The Working Time Directive gives EU workers the rights to a minimum number of holidays each year, rest of at least 11 hours in any 24 hours and restricts excessive night work.

Now that we have left the EU, the UK government could choose to change any law that existed at an EU level. This could include reducing or removing some employment and social protection. However, the government could also choose to improve conditions for UK citizens without having to agree these changes with other EU countries.

As a result of Brexit, all decisions taken at EU level have returned to the UK. There have been arguments over which parliaments should be taking these decisions. Some areas have been passed to the devolved parliaments, but the Scottish Government argued that these did not go far enough.

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