Brexit Economic Damage Repair: Burnham's Top Business Priority 2026

Repairing the economic damage of Brexit should be Andy Burnham’s top priority as he reconsiders Labour’s red lines on EU membership, according to the head of one of Britain’s leading business groups. Shevaun Haviland, director general of the British Chambers of Commerce (BCC), said she welcomed the prime minister reopening the Brexit battle lines despite the uncertainty it could create, arguing that the UK’s current trading relationship with the EU was bad for business.

“We do think it’s right, because of what we know from the evidence of how businesses feel it’s not working,” she said. Highlighting the continuing economic hit from Brexit, Haviland said more than half of bosses surveyed by the business lobby group believed the deal negotiated by Boris Johnson’s government and enacted in 2021 was not helping them.

“We expected it to be very difficult at the beginning, when [companies] were getting used to the new rules, and then it would sort of get easier as it went along. But actually, that has not happened,” she said. Economists estimate the cost to the UK economy has been up to £240bn so far, with national income per head between 6% and 8% lower than it would have been had the UK not left the EU. The Office for Budget Responsibility estimates a long-term hit of about 4% of gross domestic product.

The Economic Cost of Brexit in Numbers

The scale of Brexit economic damage is staggering. Business leaders and economists point to multiple indicators showing the UK’s departure from the EU has suppressed growth, investment, and trade. Below is a comparison of key estimates:

These figures underscore why the BCC and other business groups are pushing for a rethink. The current trading relationship, characterized by customs checks, regulatory hurdles, and reduced market access, has proven more burdensome than initially anticipated.

Why Burnham’s Priority Should Be Brexit Repair

Andy Burnham, the mayor of Greater Manchester and a prominent Labour figure, has signalled a willingness to revisit Labour’s red lines on EU membership. At Labour’s conference in Liverpool last month, Burnham said Brexit had not delivered what was promised. Business leaders argue that repairing the economic damage should be his top priority.

“The evidence is clear: Brexit is holding back UK businesses,” Haviland said. “We need to reduce friction, not add to it.” She added that the BCC’s survey of bosses found widespread frustration with the current deal, with many reporting increased costs and administrative burdens.

For Burnham, focusing on Brexit repair could unlock growth and restore business confidence. The alternative—maintaining the status quo—risks further erosion of the UK’s economic competitiveness.

Key Takeaways for UK Businesses

• Brexit economic damage is substantial: Up to £240bn cost so far and 6-8% lower income per head.
• Business sentiment is negative: Over half of BCC-surveyed bosses say the current deal is not helping.
• Burnham’s stance matters: Reconsidering EU red lines could lead to improved trading terms.
• Urgency is high: Long-term GDP hit of 4% demands immediate action.

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