On 31 January 2020, the United Kingdom left the European Union after 47 years of close political ties. The decision set in motion a series of changes that have affected various aspects of life in Britain. This article reviews five areas where Brexit has left its mark: trade, immigration, travel, law, and public finances.
Trade Impact
The end of free movement in the single market and customs union led to complications in trade. A free trade deal was reached, and tariffs were avoided. However, new non-tariff barriers, such as increased paperwork and administrative delays, have hampered the flow of goods. Small firms like non Gamstop casinos, in particular, have struggled with the extra bureaucracy compared to larger companies that can more easily adapt to new requirements.
Research shows mixed estimates regarding the drop in goods exports. Some studies indicate a reduction of up to 30%, while others suggest a decrease closer to 6%. The Office for Budget Responsibility (OBR) has long assumed that trade in both goods and services would drop by around 15% in the long term. This fall is thought to contribute to a long-term economic shrinkage of about 4%, equivalent to roughly £100 billion in today’s money.
Despite these challenges, the export of services such as advertising and management consulting has performed better than expected. The experience of British businesses during this transition highlights the need for improved support for small enterprises that have been most affected by the new trade regime.
Trade Summary Table
Trade Aspect | Impact |
Goods Exports | Reduction estimated between 6% and 30% |
Services Exports | Performance better than expected |
Small Firms | More affected by administrative burdens |
Economic Outlook | Long-term GDP reduction of around 4% |
Immigration Impact
Immigration was a central topic during the Brexit referendum. The freedom of movement allowed UK and EU citizens to work and live across borders with ease. Since the referendum, there has been a notable decline in immigration from the EU. This trend accelerated after the end of freedom of movement in 2020. In contrast, net migration from non-EU countries has increased.
In January 2021, a new immigration system was introduced. Under the new system, both EU and non-EU citizens must apply for work visas to work in the UK, with the exception of Irish citizens who retain their rights. The system has led to a surge in applications, especially in sectors such as health and care. British universities have also seen an increase in applications from non-EU students due to changes in visa policies that allow them to remain and work in Britain after graduation.
Key points regarding immigration include:
- A sharp fall in EU immigration numbers
- Increased work visa applications, particularly in health and care
- Growth in international student numbers and subsequent work opportunities
- Adjustments in visa rules for dependents affecting many applicants
Travel Impact
The end of free movement has also altered the travel landscape for both British citizens and visitors. UK passport holders no longer benefit from the specialised “EU/EEA/CH” lanes at border crossings. British travellers must now adjust to new rules and procedures when entering the EU.
The EU is set to introduce an electronic Entry Exit System (EES) in 2025. This system will replace manual passport stamping by recording biometric data, travel documents, and the dates of entry and exit. The delay in implementation has sparked concerns among travel industry professionals about potential increases in border queue times.
Furthermore, six months after the EES goes live, the EU will launch the European Travel Information and Authorisation System (ETIAS). This system will require UK citizens to obtain ETIAS clearance before travelling to 30 European countries. ETIAS clearance will cost around €7 and will be valid for up to three years or until the passport expires. On the UK side, a similar Electronic Travel Authorisation (ETA) will come into effect from 2 April 2025 for EU citizens, with Irish citizens exempt from the requirement.
Travel Requirements Table
Requirement | UK Citizens | EU Citizens |
Visa-Free Travel | 90 days as a tourist in any 180-day period | Up to 6 months without a visa |
Automated Systems | ETIAS clearance for travel to the EU | ETA required for entry to the UK (from April 2025) |
Cost of Authorization | Approximately €7 for ETIAS clearance | Approximately £16 for ETA (UK system) |
Legal Sovereignty
One of the promises made during the Brexit campaign was the return of full legal sovereignty to the UK. In order to avoid disruption following Brexit, the government incorporated thousands of EU laws into British law. This collection, known as “retained EU law,” initially consisted of nearly 7,000 items covering areas such as working time, equal pay, food labelling, and standards.
The government planned to repeal a number of these laws quickly after Brexit. In May 2023, the Trade Secretary announced that about 600 EU laws would be removed by the end of the year, with another 500, mainly in the financial services sector, to follow later. Many of the laws retained were seen as outdated or superseded by newer regulations.
Brexit has also allowed changes to certain laws. The United Kingdom now has the freedom to modify regulations that were previously dictated by the EU. For instance, the UK banned the export of live animals for slaughter and fattening and introduced a zero rate of VAT on sanitary products—an option that was not permitted under the EU rules until a later change.
Key points on legal sovereignty include:
- The retention of nearly 7,000 EU laws in UK legislation
- The planned repeal of several outdated or less relevant laws
- Modifications to laws in areas such as tax and animal exports
- The introduction of changes to VAT rules for specific products