London Daily

Focus on the big picture.
Tuesday, Nov 18, 2025

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
UK Unveils Sweeping Asylum Reforms with 20-Year Settlement Wait and Conditional Status
UK Orders Twitter Hacker to Repay £4.1 Million Following 2020 High-Profile Breach
Popeyes UK Eyes Century Mark as Fried-Chicken Chain Accelerates Roll-out
Two-thirds of UK nurses report working while unwell amid staffing crisis
Britain to Reform Human-Rights Laws in Sweeping Asylum Policy Overhaul
Nearly Half of Job Losses Under Labour Government Affect UK Youth
UK Chancellor Reeves Eyes High-Value Home Levy in Budget to Raise Tens of Billions
UK Urges Poland to Choose Swedish Submarines in Multi-Billion € Defence Bid
US Border Czar Tom Homan Declares UK No Longer a ‘Friend’ Amid Intelligence Rift
UK Announces Reversal of Income Tax Hike Plans Ahead of Budget
Starmer Faces Mounting Turmoil as Leaked Briefings Ignite Leadership Plot Rumours
UK Commentator Sami Hamdi Returns Home After US Visa Revocation and Detention
UK Eyes Denmark-Style Asylum Rules in Major Migration Shift
UK Signals Intelligence Freeze Amid US Maritime Drug-Strike Campaign
TikTok Awards UK & Ireland 2025 Celebrates Top Creators Including Max Klymenko as Creator of the Year
UK Growth Nearly Stalls at 0.1% in Q3 as Cyberattack Halts Car Production
Apple Denied Permission to Appeal UK App Store Ruling, Faces Over £1bn Liability
UK Chooses Wylfa for First Small Modular Reactors, Drawing Sharp U.S. Objection
Starmer Faces Growing Labour Backlash as Briefing Sparks Authority Crisis
Reform UK Withdraws from BBC Documentary Amid Legal Storm Over Trump Speech Edit
UK Prime Minister Attempts to Reassert Authority Amid Internal Labour Leadership Drama
UK Upholds Firm Rules on Stablecoins to Shield Financial System
Brussels Divided as UK-EU Reset Stalls Over Budget Access
Prince Harry’s Remembrance Day Essay Expresses Strong Regret at Leaving Britain
UK Unemployment Hits 5% as Wage Growth Slows, Paving Way for Bank of England Rate Cut
Starmer Warns of Resurgent Racism in UK Politics as He Vows Child-Poverty Reforms
UK Grocery Inflation Slows to 4.7% as Supermarkets Launch Pre-Christmas Promotions
UK Government Backs the BBC amid Editing Scandal and Trump Threat of Legal Action
UK Assessment Mis-Estimated Fallout From Palestine Action Ban, Records Reveal
UK Halts Intelligence Sharing with US Amid Lethal Boat-Strike Concerns
King Charles III Leads Britain in Remembrance Sunday Tribute to War Dead
UK Retail Sales Growth Slows as Households Hold Back Ahead of Black Friday and Budget
Shell Pulls Out of Two UK Floating Wind Projects Amid Renewables Retreat
Viagogo Hit With £15 Million Tax Bill After HMRC Transfer-Pricing Inquiry
Jaguar Land Rover Cyberattack Pinches UK GDP, Bank of England Says
UK and Germany Sound Alarm on Russian-Satellite Threat to Critical Infrastructure
Former Prince Andrew Faces U.S. Congressional Request for Testimony Amid Brexit of Royal Title
BBC Director-General Tim Davie and News CEO Deborah Turness Resign Amid Editing Controversy
Tom Cruise Arrives by Helicopter at UK Scientology Fundraiser Amid Local Protests
Prince Andrew and Sarah Ferguson Face Fresh UK Probes Amid Royal Fallout
Mothers Link Teen Suicides to AI Chatbots in Growing Legal Battle
UK Government to Mirror Denmark’s Tough Immigration Framework in Major Policy Shift
UK Government Turns to Denmark-Style Immigration Reforms to Overhaul Border Rules
UK Chancellor Warned Against Cutting Insulation Funding as Budget Looms
UK Tenant Complaints Hit Record Levels as Rental Sector Faces Mounting Pressure
Apple to Pay Google About One Billion Dollars Annually for Gemini AI to Power Next-Generation Siri
UK Signals Major Shift as Nuclear Arms Race Looms
BBC’s « Celebrity Traitors UK » Finale Breaks Records with 11.1 Million Viewers
UK Spy Case Collapse Highlights Implications for UK-Taiwan Strategic Alignment
On the Road to the Oscars? Meghan Markle to Star in a New Film
×