London Daily

Focus on the big picture.
Sunday, Oct 19, 2025

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
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
Australian Punter Archie Wilson Tears Up During Nebraska Press Conference, Sparking Conversation on Male Vulnerability
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Erika Kirk Delivers Moving Tribute at White House as Trump Awards Charlie Presidential Medal of Freedom
British Food Influencer ‘Big John’ Detained in Australia After Visa Dispute
ScamBodia: The Chinese Fraud Empire Shielded by Cambodia’s Ruling Elite
French PM Suspends Macron’s Pension Reform Until After 2027 in Bid to Stabilize Government
Orange, Bouygues and Free Make €17 Billion Bid for Drahi’s Altice France Telecom Assets
Dutch Government Seizes Chipmaker After U.S. Presses for Removal of Chinese CEO
Bessent Accuses China of Dragging Down Global Economy Amid New Trade Curbs
U.S. Revokes Visas of Foreign Nationals Who ‘Celebrated’ Charlie Kirk’s Assassination
AI and Cybersecurity at Forefront as GITEX Global 2025 Kicks Off in Dubai
DJI Loses Appeal to Remove Pentagon’s ‘Chinese Military Company’ Label
EU Deploys New Biometric Entry/Exit System: What Non-EU Travelers Must Know
Australian Prime Minister’s Private Number Exposed Through AI Contact Scraper
Ex-Microsoft Engineer Confirms Famous Windows XP Key Was Leaked Corporate License, Not a Hack
China’s lesson for the US: it takes more than chips to win the AI race
Australia Faces Demographic Risk as Fertility Falls to Record Low
California County Reinstates Mask Mandate in Health Facilities as Respiratory Illness Risk Rises
Israel and Hamas Agree to First Phase of Trump-Brokered Gaza Truce, Hostages to Be Freed
×