- The bulk of our economic activity is home output for UK people. More than half our overseas trade is with non EU countries and over half our trade is in services, not goods. Yet many in government go on and on about how to get growth we need to boost exports of goods to Europe. Remain supporters cling to the long disproven idea that our goods trade with the EU would fall with Brexit and lead to lower GDP.
The main reason the UK is not growing today is the anti business budget last year which stopped a good growth in the first half of the year and threatens more damage to UK business when the jobs tax kicks in in April.indeed, growth in just the first quarter of 2024 was more than the Bank of England forecast for the whole of 2925 after the disaster budget.
Since 2016 when we decided to leave the EU exports are up from £575 bn to £837 bn or 45%. Since we left in 2020 they are up from £624 bn or a third. They are up by more with the rest of the world than the EU and services are up by more than goods, but that was also the trend in our later tears in the EU. The EU has been growing too slowly. The rest of the world has been growing faster and is keener on our exports.
Trump tariffs have not yet had any effect on the numbers. Their inflationary effects will be the US, not on us. The UK did scrap all EU tariffs on intermediates when we left the EU and all tariffs on goods we do not make, to stop taxing ourselves. The UK should drop the damaging carbon border tax or tariff which the EU proposed and which we have still not dropped. It will put up our inflation and anger the US, inviting retaliation.
Current Uk industrial and energy policies are designed to drive down our goods and oil exports by banning oil,gas, petrol and diesel cars and by giving us such dear energy our high energy using industries cannot compete. It is the net zero policy, not Brexit that will lose us national output and exports.