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The tools for growth are now in Britain's hands

Most British businesses never sell abroad, but EU rules applied to all of them. Outside the EU, a government can set tax, regulation and trade policy for Britain's economy alone.

Rules for the few, applied to the many

Almost 9 in 10 British businesses export nothing at all

Yet inside the EU, single-market rules written for cross-border trade applied to every one of them: the builder, the café and the hairdresser as much as the car exporter.

UK registered businesses that do not export

87.7%

2.38 million of 2.71 million

UK registered businesses that export anywhere in the world

12.3%

Fewer still sell to the EU

About 133,000 businesses exported goods to any country in 2024, on HMRC customs figures. That is roughly 5% of registered businesses, and those selling to the EU are only part of that number. Outside the EU, Parliament can keep export rules for exporters and write simpler ones for everyone else.

Department for Business and Trade, 2024 figures; HMRC, customs importer and exporter population 2024

In fairness: exporters are often larger firms and account for a big share of jobs and output, many small firms supply them, and these counts cover goods better than services. Many rules, such as safety and employment law, would exist under UK law anyway. The point is who gets to tailor them. Sources

The tools are in Britain's hands

Seven ways a government could use Brexit to drive growth

Brexit does not create growth by itself. It hands the tools to whoever governs. Here is what a government that chose to use them could do.

  1. 1

    Write lighter rules for firms that never export

    Review the thousands of EU-derived rules still on the statute book and simplify them for the businesses that only trade at home.

    Only possible outside the EURetained EU Law Act 2023

  2. 2

    Cut VAT where it hurts most

    As an EU member the UK could not cut VAT on household gas and electricity below 5%. Outside, Parliament could cut it to zero, as it did for sanitary products.

    Only possible outside the EUEU VAT Directive

  3. 3

    Back regions with targeted tax breaks

    Freeports, investment zones and regional incentives can be designed in Britain, without asking Brussels for state-aid approval first.

    Only possible outside the EUSubsidy Control Act 2022

  4. 4

    Sign more trade deals and cut tariffs

    Build on India and the Pacific partnership, and remove tariffs on goods Britain does not make, which lowers prices in the shops.

    Only possible outside the EUUK Global Tariff

  5. 5

    Lead in new technology

    Set UK rules for artificial intelligence, gene editing, clinical trials and fintech that welcome investment, instead of adopting rules agreed by 27 countries.

    Only possible outside the EUPrecision Breeding Act 2023; UK AI approach

  6. 6

    Open public contracts to small British firms

    The public sector spent £461bn buying goods and services in 2025/26. UK procurement rules can now make it simpler for small and local firms to win that work.

    Only possible outside the EUProcurement Act 2023

  7. 7

    Lower business taxes, on Britain's terms

    The UK cut corporation tax from 28% to 19% between 2010 and 2017, and receipts rose as a share of the economy. The main rate has been 25% since 2023. A government that wanted more start-ups and investment could cut it again: 815,277 companies were formed in the UK in 2025–26. Corporation tax was always set in London, even inside the EU, so this is not a Brexit freedom in itself. But Brussels has proposed a common EU rulebook for company tax, and its state-aid rules limited targeted tax breaks. Outside, the choice stays Britain's.

    A UK choice, protected by leavingHouse of Commons Library; Companies House; European Commission BEFIT proposal, 2023

These are options, not predictions. Economists disagree about how much each would add to growth, and every one has costs as well as benefits. What Brexit changed is who decides. Sources

Trade since Brexit

Did Brexit ruin British trade?

No. Britain left the EU in 2020. Since then its exports have grown by about a fifth after inflation, led by services. Goods are the weaker spot, and we show that too.

£913bn

British exports in 2025

Goods and services together, up about a fifth since 2020 after inflation. Britain is the world's fourth-largest exporter. See Britain's world rankings

House of Commons Library, 2026; World Bank

Up 37–51%

Services exports since 2020, after inflation

Up 51% to the EU and 37% to the rest of the world. Services are now 59% of everything Britain sells abroad.

House of Commons Library, June 2026; ONS, UK trade, December 2025

−2% and +5%

Goods exports since 2020, after inflation

Down 2% to the EU and up 5% to the rest of the world. Goods are the weaker side of British trade.

House of Commons Library, June 2026

We measure from 2020, the year Britain left the EU and the last year it traded under EU rules. It was also the first year of the pandemic, so part of the rise since then is recovery. Measured from 2019 instead, services exports are up 28% to the EU and 26% to the rest of the world, and goods exports are down 14% to the EU and 8% to the rest of the world. Sales outside the EU fell too, so Brexit is not the only cause: the pandemic, the war in Ukraine and supply-chain disruption all played a part, alongside new paperwork at the EU border. Sources

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