The government must signal the UK’s intent to apply for EU membership to boost economic growth and increase trade.
The UK’s goods trade deficit has flatlined at £21bn and GDP fell by 0.1% in April 2026, based on newly released data from the Office for National Statistics (ONS). This marks the first monthly fall of GDP since August 2025.
Research commissioned by Best for Britain and undertaken by Frontier Economics found that the UK could see 1.7-2.2% GDP growth from closer regulatory alignment on goods and services between the UK and the EU.
Naomi Smith, Chief Executive of Best for Britain, said:
“With growth dropping and Brits set to be further squeezed by the impending inflation shock from Trump’s Iran war, cabinet ministers are now being forced into increasingly difficult choices, while the government braces for the political pain to fund the defence investment plan.
“It’s vital ministers recognise that the signalling effect alone of the UK’s intent to apply for EU membership would rally the pound, lower borrowing costs and boost investment, creating the fiscal headroom they need to ease the affordability crisis and invest in our public services - and that’s even before the growth that would be on offer through actual membership.”