Repairing Brexit economic damage should be one of Prime Minister Andy Burnham’s main priorities, according to a leading British business representative who has warned that the UK’s current trading relationship with the European Union is creating difficulties for companies.
Shevaun Haviland, director general of the British Chambers of Commerce (BCC), has welcomed Burnham’s decision to reconsider the government’s approach to Brexit and its relationship with the EU.
Her comments come as the prime minister prepares for a major UK-EU summit in November 2026, where both sides are expected to discuss new trade arrangements and opportunities for closer cooperation.
The debate has renewed questions about the long-term economic consequences of leaving the European Union and whether the government should consider deeper integration with Europe’s single market.
Business Chief Calls for Action on Brexit Economic Damage
Haviland believes the government needs to address the problems British businesses have experienced since the UK left the European Union.
Speaking to The Guardian, she argued that the current trading arrangements were failing to deliver the benefits many businesses had hoped for.
According to the BCC, more than half of business leaders surveyed said the trade agreement introduced in 2021 was not helping their companies.
Businesses initially expected that the difficulties associated with new customs procedures and regulations would become easier to manage over time.
However, Haviland said many companies continued to experience problems years after the agreement took effect.
The findings have increased pressure on the government to simplify trading arrangements and reduce unnecessary costs.
For businesses that rely on European customers and suppliers, even relatively small administrative barriers can affect profitability and competitiveness.
How Has Brexit Affected the UK Economy?
Brexit has had a significant impact on Britain’s economic relationship with its largest neighbouring trading bloc.
Before leaving the European Union, the UK participated in the single market and customs union, allowing many goods to move across borders with fewer administrative requirements.
The introduction of new trading arrangements created additional customs declarations, regulatory checks and compliance obligations.
These changes have particularly affected smaller businesses that may lack the resources to manage complex international trading requirements.
The Office for Budget Responsibility estimates that Brexit will reduce the UK’s long-term productivity and economic output by approximately 4% compared with a scenario in which Britain remained in the EU.
This is a forecast of the difference between two economic scenarios, rather than a claim that the economy has literally contracted by 4% since Brexit.
Other economic studies have estimated larger effects, although researchers continue to debate the precise impact.
Businesses also face challenges unrelated to Brexit, including inflation, energy prices, weak investment and global economic uncertainty.
Nevertheless, reducing barriers to European trade has become an important part of the discussion about improving Britain’s economic performance.
Andy Burnham Signals a New Approach to the European Union
Prime Minister Andy Burnham has indicated that the government should take a fresh look at the UK’s relationship with Europe.
Speaking at the Labour Party conference in September, Burnham acknowledged that Brexit had caused economic harm and argued that Britain needed a clearer long-term strategy.
He has also suggested that the country should consider a wider range of options for its future relationship with the European Union.
However, Burnham has not announced a decision to rejoin the EU.
His immediate focus is on securing practical agreements that could improve trade, strengthen cooperation and support economic growth.
The prime minister has emphasised that any fundamental change to Britain’s relationship with the European Union would require public support.
His approach represents a shift from the more cautious position taken by his predecessor, Keir Starmer.
UK-EU Summit Scheduled for November 2026
The next major opportunity for progress will come at the UK-EU summit scheduled for 20 November 2026.
Burnham hopes to negotiate agreements covering several areas of economic cooperation.
One proposal involves aligning food and agricultural standards to reduce checks on goods moving between Britain and the European Union.
Such an agreement could benefit food producers, supermarkets, farmers and businesses involved in international supply chains.
Another proposal involves linking the UK’s emissions trading system with the EU’s equivalent arrangement.
This could reduce complications for businesses affected by carbon pricing and related trade rules.
The government is also discussing a youth mobility arrangement that could make it easier for eligible young people to live, work or study abroad for limited periods.
Government estimates suggest that the proposed agreements could eventually provide a substantial economic benefit, although the final impact will depend on the terms negotiated.
Why British Businesses Want Easier Trade With Europe
The European Union remains an important market for British exporters and a major source of imported goods.
Companies in manufacturing, agriculture, retail and professional services maintain close commercial relationships with their European partners.
Since Brexit, some businesses have reported higher costs associated with paperwork, customs procedures and regulatory differences.
Smaller exporters can be particularly vulnerable because administrative costs may represent a larger proportion of their revenue.
For example, a small British food producer exporting products to Europe may need additional documentation and certification.
These requirements can make exporting less attractive, especially when businesses operate on narrow profit margins.
Supporters of closer UK-EU trade arrangements argue that simplifying these procedures could help companies expand and invest.
However, the potential benefits would depend on the extent of regulatory cooperation and whether both sides can agree on acceptable terms.
Could Britain Rejoin the European Union?
The possibility of Britain eventually rejoining the EU has returned to political debate.
Burnham has declined to rule out discussing membership as part of a longer-term national conversation.
However, rejoining would be a major political and economic decision requiring negotiations with European governments.
Questions would include Britain’s financial contributions, regulatory obligations, immigration arrangements and participation in European institutions.
There would also be debate about whether the UK should seek membership of the single market or customs union without immediately pursuing full EU membership.
Supporters of closer integration argue that it could reduce trade barriers and improve economic opportunities.
Opponents emphasise the importance of national sovereignty, independent trade policy and maintaining control over domestic regulations.
The government’s immediate proposals do not amount to a commitment to reverse Brexit.
Conservatives Criticise Burnham’s Brexit Strategy
The government’s approach has attracted criticism from the Conservative opposition.
Conservative leader Kemi Badenoch has argued that simply moving closer to the EU would not resolve Britain’s wider economic difficulties.
She has also questioned whether publicly discussing future concessions could weaken the UK’s negotiating position.
Critics of deeper integration argue that Britain should make greater use of its ability to establish independent trading and regulatory policies.
They point to agreements with countries outside Europe and opportunities to develop new industries.
Supporters of Burnham’s approach respond that closer cooperation with the EU does not necessarily prevent Britain from pursuing wider international trade relationships.
The disagreement reflects a continuing debate over how the UK should balance economic integration with regulatory independence.
What Would a Better Brexit Deal Mean for Ordinary People?
Changes to the UK’s trading relationship with the EU could have consequences beyond large businesses.
Reduced administrative costs could make it easier for some companies to import products and export goods.
Increased trade could also support employment and investment in industries with strong European connections.
Consumers might benefit if lower business costs were passed on through prices, although such savings would not be guaranteed.
Young people could also gain further opportunities through a negotiated mobility programme.
However, closer regulatory cooperation might involve new obligations or restrictions on Britain’s ability to change certain rules independently.
The overall effects would depend on the specific agreements reached and how businesses respond.
What Happens Next?
The government will continue preparing for negotiations ahead of the November summit.
Business organisations are expected to press ministers to prioritise practical improvements that reduce costs and support economic growth.
European leaders will also need to decide how far they are willing to go in developing a closer relationship with Britain.
One possible difficulty involves proposed EU industrial policies that could give European manufacturers advantages in certain markets.
British manufacturers are concerned that such measures could affect their access to European supply chains.
Burnham has indicated that protecting British industry will be part of his discussions with European leaders.
Any agreements will require negotiations, and their economic effects may take time to become clear.
Conclusion
The call for repairing Brexit economic damage has become a central part of Britain’s renewed debate about its relationship with the European Union.
Shevaun Haviland and the British Chambers of Commerce argue that the current arrangements continue to create difficulties for businesses and that the government should take action.
Prime Minister Andy Burnham has responded by reopening discussions about Britain’s long-term European relationship while pursuing more immediate trade agreements.
The November UK-EU summit will provide an important test of whether the government can translate its proposals into practical economic improvements.
Although political disagreements over Brexit remain, the debate now focuses heavily on trade costs, business investment, productivity and economic growth.
The outcome of the negotiations could influence Britain’s economic relationship with Europe for years to come.
Frequently Asked Questions
What is Brexit’s economic damage?
Brexit economic damage refers to negative economic effects associated with leaving the European Union, including additional trade barriers, administrative costs and reduced investment or productivity compared with a scenario in which the UK remained a member.
Who has urged Andy Burnham to prioritise the economic damage from Brexit?
Shevaun Haviland, director general of the British Chambers of Commerce, has called for action to improve the UK’s trading relationship with the EU.
When is the next UK-EU summit?
The next UK-EU summit is scheduled for 20 November 2026.
Does Andy Burnham want Britain to rejoin the EU?
Burnham has indicated that the UK should reconsider its longer-term relationship with the EU, but he has not committed his government to seeking full membership.
How much has Brexit affected the UK economy?
The Office for Budget Responsibility estimates that Brexit will reduce long-term UK economic output by around 4% compared with remaining in the EU.
Could a new EU trade deal help British businesses?
It could reduce some trading costs and administrative barriers, although the benefits would depend on the final agreement and how businesses use the new arrangements.
