In her Spring Statement today the Chancellor emphasised the need to drive growth across the UK but made no mention of the opportunities on offer from improving trading arrangements between the UK and its largest market, the European Union.
Speaking in the House of Commons, Rachel Reeves confirmed that the 2025 growth estimate for the UK has been halved to 1% from 2% by the Office for Budget Responsibility (OBR) and stated that she was unsatisfied with the forecast.
However, in outlining the government's plans to increase growth, the Chancellor did not mention the potential increase in economic growth across the country which can be achieved by removing trade barriers between the EU and the UK.
Independent research undertaken by Frontier Economics published earlier this year suggests that a common sense deal between the EU and the UK could boost the UK economy by up to 2.2%, more than five times what the OBR's estimated benefits from the Government's planning reforms cited by the Chancellor today.
Naomi Smith, Chief Executive of Best for Britain which campaigns for closer EU-UK ties said,
“In the coming months and years, this Government’s record will be judged at the ballot box on whether it achieves meaningful growth across the UK. Nothing, not a trade deal with Trump, nor the expansion of Heathrow, can deliver the scale and speed of growth that alignment on goods and services with our largest market in the EU achieves.
"That must be the next ambition for Starmer, Reeves, and the country”