The ramifications of Brexit on the UK economy have been unveiled in a recent report, as London Mayor Sadiq Khan brought to light the impact on the capital’s financial wellbeing. At the esteemed Mansion House dinner, the unveiling of the Cambridge Econometrics report, commissioned by City Hall, revealed that London’s economy had shrunk by over £30 billion.
Brexit has led to 290,000 fewer jobs in London, contributing to a national total of two million job losses, particularly affecting the financial services and construction sectors. The average Londoner felt the impact, being nearly £3,400 worse off last year due to Brexit, while the average Briton was almost £2,000 worse off overall.
In his speech at the Mansion House, Sadiq Khan emphasized Brexit’s role in the current cost-of-living crisis, linking it to food price increases. Stressing the urgent need for the UK to build a closer relationship with the EU, the Mayor called for action to address the economic decline caused by Brexit.
The economic projections in the report paint a bleak picture, with an anticipated £300 billion decrease in the UK’s economy by 2035 if no action is taken, along with over £60 billion wiped off London’s economy alone.
During his speech, the Mayor expressed the need for open and honest discussions about the detrimental impact of Brexit on the economy, emphasizing the adverse effects on various industries and urging for a new trading arrangement with the EU to boost economic growth and living standards.
Sadiq Khan also addressed the need for a sensible approach to migration, emphasizing the importance of evidence-based policy to tackle London’s labor shortage. He stressed the economic benefits of immigration and called for a mature and factual approach to this contentious issue.
Furthermore, the Mayor highlighted the significance of safeguarding London’s values of openness, cooperation, and inclusivity, expressing concern about the increasing presence of divisive politics and pledging to work towards protecting the city’s inclusive and outward-looking nature.
The report commissioned by City Hall has shed light on the substantial impact of Brexit on London’s economy, calling for urgent measures to mitigate the consequences. With clear evidence of economic decline and job losses, the Mayor has underlined the pressing need for a re-evaluation of the UK’s relationship with the EU post-Brexit.
In the wake of Brexit’s fallout, Sadiq Khan has stood up for the interests of London and its residents, advocating for a more transparent and pragmatic approach to address the economic challenges posed by the UK’s departure from the EU.
