London Daily

Focus on the big picture.
Sunday, Sep 06, 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
AfD Enters Saxony-Anhalt Election at 41% in Historic Test for German Politics
Gen Z Turns to Investing as America's First-Home Dream Moves Further Out of Reach
Donald Trump: "I'm Glad Harry and Meghan Left the United States"
Spicy Food Is Linked to Lower Death Risk — but It Is Not a Miracle Cure
Thousands Join Anti-Abortion March Through Central London
UK Beekeepers Call for Nationwide Tracking as Asian Hornet Sightings Increase
England Sees Sharp Rise in Property Subsidence Claims After Record Summer Heat
House of Lords Advances Financial Services Reform Bill
House of Lords Begins Detailed Scrutiny of Railways Bill and Great British Railways Plan
UK Treasury Cuts Green Book Discount Rate to Support More Regional Infrastructure Projects
Reform UK Suspends Two Senior Aides After Undercover Report on Foreign Donation Rules
UK Chancellor Warns Autumn Budget Will Require Tough Choices as Energy Shock Squeezes Public Finances
UK Parliament Raises Concerns Over Funding Structure of £400 Million Tropical Forest Initiative
Andy Burnham Launches Number 10 North as Part of UK Devolution Push
UK Reaffirms Falkland Islands Sovereignty Amid Renewed Regional Pressure
Andy Burnham to Abstain From Assisted Dying Vote as Ministers Are Told to Remain Neutral
Kemi Badenoch Sacks Shadow Chancellor Mel Stride in Conservative Economic Strategy Shake-Up
UK Government Drops Early Prisoner Release Plan in Favor of Deportations and Wider Prison Reform
UK Farmers Warn Drought-Hit Harvests Could Push Grocery Prices Higher
UK Economy Faces Persistent Stagflation Risks Ahead of October Budget
Masked Protesters Block Port of Dover Roads, Disrupting Cross-Channel Traffic
Reform UK Suspends Senior Officials After Undercover Investigation Into Foreign Donation Plans
UK Urges Households to Keep Emergency Supplies Amid Severe El Niño Warning
Prime Minister Andy Burnham Sets Out Regional Industry and Prison Reform Agenda
Siemens Energy Wins Rolls-Royce Small Modular Reactor Manufacturing Contract
UK Mortgage Costs Rise as Gilt Yields and Swap Rates Climb
Bank of England’s Huw Pill Calls for Prompt Rate Rise as Inflation Risks Persist
National Audit Office Warns UK Is Unprepared for Major Food Supply Disruptions
British Army Suspends Some Training Exercises as Budget Pressures Intensify
HMS Queen Elizabeth Deploys as NATO Allied Response Force Command Ship
Reform UK Suspends Two Senior Officials Over Alleged Foreign Donation Scheme
UK Reasserts Falkland Islands Sovereignty After Argentina Threatens Sanctions
Scottish Tech Company PureLifi Enters Administration With More Than 40 Job Losses
Scottish Government Names Alyn Smith Innovation and Education Minister
Green Party Co-Leader Zack Polanski to Contest By-Election for Keir Starmer’s Former Seat
Palestine Action Activists Appeal Terrorism-Related Prison Sentences
PwC Report Highlights Persistent Regional Spending-Power Divide Across Britain
UK Names Hundreds of Employers for Minimum Wage Violations
UK Commits £400 Million to International Tropical Forest Fund
UK Extends £2 Bus Fare Cap Across England Through 2027
UK Warns Travellers as US-Iran Tensions Disrupt Middle East Security and Shipping
Andy Burnham Faces Kemi Badenoch in First Prime Minister’s Questions
Kemi Badenoch Names Andrew Griffith Shadow Chancellor in Conservative Reshuffle
UK Treasury and Markets Focus on Fiscal Headroom Ahead of Autumn Budget
UK Government Reverses Early Release Plans for Serious Violent and Sexual Offences
UK and France Review Border Cooperation After 48,000 Small-Boat Crossings Prevented
UK Growth Outlook Weakens as Inflation and Energy Costs Rise
Breeding Tropical Mosquitoes Discovered in East London
Sadiq Khan Agrees to Search of Digital Communications in Palantir Lawsuit
Scottish Protesters Call for Moratorium on AI Data Centre Expansion
×