London Daily

Focus on the big picture.
Wednesday, Jan 14, 2026

Windsor Framework's value to economy unlikely to be notable but may lift Brexit malaise

Windsor Framework's value to economy unlikely to be notable but may lift Brexit malaise

Sky's economics & data editor Ed Conway writes that while the Northern Ireland Protocol's replacement could lift sentiment, the impact - on paper at least - is likely to be small.

How much of a difference might the Windsor Framework make to the UK economy?

The answer, as with so many other economic questions, rather depends on how you look at it.

Let's begin with the basics.

This deal will not change the formal trade relationship between the UK and the EU.

All those post-Brexit issues with frictions and customs checks stay as they are, at least for goods passing between the EU and the rest of the UK.

Mostly, this deal is aimed at improving the flow of goods across the Irish Sea, while also preventing the erection of a border on the island of Ireland. And here, there are certainly some areas where the friction is all too evident.

That might not be altogether obvious from overall trade figures, which still show a gradual increase in sales passing across the Irish Sea to Northern Ireland. But since the imposition of EU rules on trade between Northern Ireland and the rest of the UK, there has been a sharp fall in food imports.

One way of seeing this is by drilling down into the data and looking at how much in the way of food and vegetables Northern Ireland gets these days from the Republic of Ireland (as opposed to the rest of the UK). And indeed: after the end of the transition period the food and veg imports from Ireland more than doubled - a massive shift.


If the Windsor Framework does as intended, it should unblock these UK flows, meaning Northern Ireland can once again rely on free (or freer) transit of most goods from the rest of the UK.

That could help boost economic growth and possibly investment too. As the PM said on Tuesday, Northern Ireland will benefit from being part of two economic zones at once, the UK and European single market.

Leaving aside the obvious rejoinder that that was precisely Britain's situation pre-Brexit, this could encourage businesses to pump more cash into Belfast and beyond.

Will this make much difference to Britain's wider economic fortunes? Not necessarily, or if it does it might not be especially noticeable.
Why? Because Northern Ireland accounts for just 2.2% of UK gross value added (London is 24%). Even a big boost in that part of the UK won't necessarily be evident from overall UK GDP.

That being said, the real question is whether this agreement - the most conciliatory yet since 2016 - will be seen as a step shift.

Will it persuade international investors that the era of instability in Britain's trade relations is now at an end? If so that could well persuade people to reallocate their cash to this country.

Guessing at the overall impact of that is a mug's game. Indeed, even the size of the economic hole made by Brexit is a hard thing to work out. The Bank of England and Office for Budget Responsibility reckon it might amount to 3-4% of GDP - a big number, and even if you subscribe to these numbers there are also questions about how much of the pain has already been inflicted.


One Bank of England policymaker, Jonathan Haskel, has a more conservative estimate: based on what's happened to business investment numbers, he thinks the UK may be around 1.3% less well off than it would otherwise have been.

That might sound trivial, but it equates to around £1,000 per household.

It seems unlikely that the Windsor Framework could make all that much difference to that figure - Britain still went for a hard Brexit and this will not change it - but some suspect there is a chance that this is the turning of the tide.

Newsletter

Related Articles

0:00
0:00
Close
UK Intensifies Arctic Security Engagement as Trump’s Greenland Rhetoric Fuels Allied Concern
Meghan Markle Could Return to the UK for the First Time in Nearly Four Years If Security Is Secured
Meghan Markle Likely to Return to UK Only if Harry Secures Official Security Cover
UAE Restricts Funding for Emiratis to Study in UK Amid Fears Over Muslim Brotherhood Influence
EU Seeks ‘Farage Clause’ in Brexit Reset Talks to Safeguard Long-Term Agreement Stability
Starmer’s Push to Rally Support for Action Against Elon Musk’s X Faces Setback as Canada Shuns Ban
UK Free School Meals Expansion Faces Political and Budgetary Delays
EU Seeks ‘Farage Clause’ in Brexit Reset Talks With Britain
Germany Hit by Major Airport Strikes Disrupting European Travel
Prince Harry Seeks King Charles’ Support to Open Invictus Games on UK Return
Washington Holds Back as Britain and France Signal Willingness to Deploy Troops in Postwar Ukraine
Elon Musk Accuses UK Government of Suppressing Free Speech as X Faces Potential Ban Over AI-Generated Content
Russia Deploys Hypersonic Missile in Strike on Ukraine
OpenAI and SoftBank Commit One Billion Dollars to Energy and Data Centre Supplier
UK Prime Minister Starmer Reaffirms Support for Danish Sovereignty Over Greenland Amid U.S. Pressure
UK Support Bolsters U.S. Seizure of Russian-Flagged Tanker Marinera in Atlantic Strike on Sanctions Evasion
The Claim That Maduro’s Capture and Trial Violate International Law Is Either Legally Illiterate—or Deliberately Deceptive
UK Data Watchdog Probes Elon Musk’s X Over AI-Generated Grok Images Amid Surge in Non-Consensual Outputs
Prince Harry to Return to UK for Court Hearing Without Plans to Meet King Charles III
UK Confirms Support for US Seizure of Russian-Flagged Oil Tanker in North Atlantic
Béla Tarr, Visionary Hungarian Filmmaker, Dies at Seventy After Long Illness
UK and France Pledge Military Hubs Across Ukraine in Post-Ceasefire Security Plan
Prince Harry Poised to Regain UK Security Cover, Clearing Way for Family Visits
UK Junk Food Advertising Ban Faces Major Loophole Allowing Brand-Only Promotions
Maduro’s Arrest Without The Hague Tests International Law—and Trump’s Willingness to Break It
German Intelligence Secretly Intercepted Obama’s Air Force One Communications
The U.S. State Department’s account in Persian: “President Trump is a man of action. If you didn’t know it until now, now you do—do not play games with President Trump.”
Fake Mainstream Media Double Standard: Elon Musk Versus Mamdani
HSBC Leads 2026 Mortgage Rate Cuts as UK Lending Costs Ease
US Joint Chiefs Chairman Outlines How Operation Absolute Resolve Was Carried Out in Venezuela
Starmer Welcomes End of Maduro Era While Stressing International Law and UK Non-Involvement
Korean Beauty Turns Viral Skincare Into a Global Export Engine
UK Confirms Non-Involvement in U.S. Military Action Against Venezuela
UK Terror Watchdog Calls for Australian-Style Social Media Ban to Protect Teenagers
Iranian Protests Intensify as Another Revolutionary Guard Member Is Killed and Khamenei Blames the West
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Europe’s Luxury Sanctions Punish Russian Consumers While a Sanctions-Circumvention Industry Thrives
Berkshire’s Buffett-to-Abel Transition Tests Whether a One-Man Trust Model Can Survive as a System
Fraud in European Central Bank: Lagarde’s Hidden Pay Premium Exposes a Transparency Crisis at the European Central Bank
Trump Announces U.S. Large-Scale Strike on Venezuela, Declares President Maduro and Wife Captured
Tesla Loses EV Crown to China’s BYD After Annual Deliveries Decline in 2025
UK Manufacturing Growth Reaches 15-Month Peak as Output and Orders Improve in December
Beijing Threatened to Scrap UK–China Trade Talks After British Minister’s Taiwan Visit
Newly Released Files Reveal Tony Blair Pressured Officials Over Iraq Death Case Involving UK Soldiers
Top Stocks and Themes to Watch in 2026 as Markets Enter New Year with Fresh Momentum
No UK Curfew Ordered as Deepfake TikTok Falsely Attributes Decree to Prime Minister Starmer
Europe’s Largest Defence Groups Set to Return Nearly Five Billion Dollars to Shareholders in Twenty Twenty-Five
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
Trump Threatens Strikes Against Iran if Nuclear Programme Is Restarted
×