London Daily

Focus on the big picture.
Saturday, Mar 21, 2026

Britain has won the biggest Brexit prize of all

Britain has won the biggest Brexit prize of all

In the end, the fish were only of symbolic importance. Neither does it matter that much what happens to Scottish seed potatoes, no matter how much of a fuss Nicola Sturgeon kicks up.
Farming, tariffs and quotas are of relatively little importance given that the exchange rate will simply adjust to compensate for any changes that are made. As the UK and the EU finally agree a trade deal, there was one victory that really mattered: regulatory divergence.

And on that the UK appears to have secured a victory. Leaving aside the diehard, swivel-eyed campaigners on both sides of the debate – and we have probably heard enough from them for any sane country over the last four years – the economic impact of leaving the European Union was always finely balanced.

Extra trade friction would mean we would lose some exports to the EU, but since they were falling anyway – and we had a huge trade deficit with the rest of Europe – that hardly amounted to much. Against that, we would save on contributions to its Budget, but given the vast scale of state spending it was not that big a deal. Net-net EU membership was never that crucial to the British economy.

There was one big prize, however. Over the last two decades it has become clear that the EU is not so much an over-mighty regulator as a really bad one. Mainly because it is bureaucratic and un-democractic, and often under the sway of the lobbyists who spend billions in Brussels every year, it has become more and more intent on clamping down on every form of innovation.

That could be seen most clearly in the internet and app economy. It became increasingly hard to believe that Europe’s dire performance against the American and now Chinese giants had nothing to do with the way the industry was crippled by its regulators. But it crept into every area of the economy, from finance, to legal and professional services, to intellectual property. If it was new, innovative and entrepreneurial, the EU either banned it, broke it up, or burdened it with so many costs it was impossible for new companies to get going or to scale up when they did.

The EU was demanding a degree of regulatory alignment from the UK that would have meant we had to stick with every wealth-destroying directive coming out of Brussels. Under-performance in the industries that matter most would have been built into the system.

That has rightly been resisted. We will now be able to embrace technologies from artificial intelligence, to driverless cars, flying taxis, lab-grown meat and vertical farms (oh, and vaccines, which the EU seems very slow to approve, even amid a pandemic).

It will take time, but with regulatory divergence the UK will steadily pull ahead of rivals such as France and Germany which you would normally expect to perform as well as, if not slightly better, than the UK.

We will be more innovative, attract more capital, and our companies will seize markets more quickly, than they otherwise would have done. We have seen the United States do that in technology, and now Britain will be able to match it. That is a prize worth having, and it has been secured.
Newsletter

Related Articles

0:00
0:00
Close
Lord Walney Warns of Expanding Iranian Influence Networks Within the United Kingdom
Iranian National Among Two Arrested After Attempt to Access UK Nuclear Submarine Base
Deregulation, Artificial Intelligence, and Fraud Laws Reshape UK Financial Services Landscape
UK Considers Lower Speed Limits to Reduce Fuel Use Amid Escalating Energy Crisis
UK Borrowing Costs Surge to Post-Crisis High as Markets React to Inflation and War Risks
UK Government Prepares Emergency Economic Measures as Iran Conflict Fuels Financial Risks
Meningitis B Outbreak in the UK Raises Urgent Health Warnings as Cases Surge
Iran Issues Stark Warning to Britain Over US Base Access Amid Expanding Conflict
United Kingdom Authorizes US Strikes from British Bases as Iran Threatens Key Shipping Routes
Reform UK Suspends Scottish Candidate Following Financial Misconduct Allegations
Apple issues an unusual warning: this is how your iPhone can be hacked without you doing anything
UK and Nigeria Reach Agreement to Accelerate Return of Irregular Migrants
UK Sets New Aid Priorities Following Significant Budget Reductions
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
UK Plans 50% Steel Tariffs in Bold Move to Protect Domestic Industry
Iran Conflict Sends Shockwaves Through UK Economy as Energy Costs and Trade Risks Surge
UK Health Officials Warn Kent Meningitis Outbreak Still Active as Cases Continue to Rise
UK Climate Progress Faces Scrutiny Over Reliance on Carbon Accounting Methods
UK Deploys Advisers to United States to Shape Plan for Reopening Strait of Hormuz
Amazon Bets on AI-Driven Alexa Upgrade to Revive UK Smart Speaker Market
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
GB News Faces Regulatory Complaints Over On-Air Remarks on ‘Genocide’ Claims
UK Signals Expanded Support for Gulf Allies as Iranian Attacks Intensify Regional Threats
UK VAT Decision Opens Path for Potential Refunds to U.S. Biopharma Firms
UK and Canada Advance ‘Middle Power’ Strategy to Shape Global Influence Beyond Superpowers
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Holds Back on Hormuz Escort Mission While Continuing Talks with Allies
TrumpRx Pricing Platform Faces Scrutiny as Some Medicines Remain Costlier Than in the UK
UK, Netherlands and Finland Explore Joint Defence Investment Bank to Boost Military Capability
Deadly Meningitis Outbreak in Kent Raises Alarm as Cases Surge and Emergency Response Expands
UK Security Adviser Viewed US-Iran Nuclear Deal as Within Reach Before Sudden Escalation
UK Prime Minister Urges Continued Focus on Ukraine Amid Escalating Iran Conflict
UK Introduces New Safeguards to Shield Lenders from Bank Run Risks
UK Promotional Products Market Surpasses £1.3 Billion as Demand Strengthens in 2025
Reeves Pushes for Deeper UK-EU Economic Ties to Revive Growth
UK Security Adviser Saw No Imminent Iranian Nuclear Threat Days Before War Erupted
France Signals Warm Welcome for UK Return to EU Single Market Amid Renewed Cooperation Talks
UK Defence Official Criticises Boeing Over Delays to E-7 Wedgetail Programme
UK Urged to Secure Quantum Talent as Minister Warns Against Repeating AI Setbacks
UK Mayors Set to Gain New Spending Powers Under Reeves’ Fiscal Devolution Plan
Western Allies Urge Restraint as Israel Weighs Expanded Ground Operation in Lebanon
Trump Warns NATO Faces ‘Very Bad’ Future Without Stronger Allied Support in Iran Conflict
UK Minister Says Britain Not Bound to Support Every Demand From U.S. President
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
×