Business Maverick: Sunak seeks to make Brexit work for Britain

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Brexit barged its way back onto the UK political agenda this month, with a report that Rishi Sunak’s government might seek closer ties with the European Union.

Both the prime minister and his chancellor, Jeremy Hunt, denied they are seeking a Swiss-style deal, and opposition Labour Party leader Keir Starmer also rejected the idea. They insist their priority is to make the Brexit deal signed in 2020 work.

Total real growth since the second quarter of 2016 has been stronger than in Italy and Germany. On per capita GDP, the UK has grown roughly in line with Germany and Spain. On Thursday, Hunt contested the OBR’s estimate. A group of pro-Brexit economists recently pointed out that the 4% is an unscientific average of 13 independent studies. Those estimates range from damage of 1.8% of GDP to 10% of GDP.Sterling has fallen 12.5% against the trade-weighted basis since the referendum, 19% against the dollar and 11% against the euro.

While it is now harder for EU migrants to move to the UK, the rules have been relaxed for other countries. All of the net migration in the latest year was accounted for by non-EU migrants. On balance, EU nationals left the country.

 

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