Britain continues to grapple with the financial fallout of Brexit, with more than £10 billion set aside for ongoing payments to the European Union.
Despite leaving the bloc in 2020, the UK remains obligated to honor financial commitments under the 2019 Withdrawal Agreement, including pension liabilities for EU staff and pre-existing budget contributions.
The latest government figures reveal a provision of £10.6 billion for future EU payments, a significant reduction from £31.7 billion last year and £38.7 billion the year before. However, critics argue that these billions represent the enduring financial burden of what they call a “terrible Brexit deal.”
Dr. Mike Galsworthy, chairman of European Movement UK, said the costs highlight the “disaster” of Brexit. “The vast sums we are still paying for a terrible Brexit deal that even Kemi Badenoch has admitted isn’t working just shows what a complete disaster every aspect of leaving the EU has been for our country,” he remarked.
In addition to the financial commitments, Brexit’s economic impact continues to weigh heavily on the UK. Official estimates indicate that Brexit will reduce the country’s trade by 15% in the long run.
According to the independent Office for Budget Responsibility, only 40% of the economic damage from Brexit has been realized so far, with the majority of the impact still looming.
Former Armed Forces Minister Sir Nick Harvey criticized the government’s handling of Brexit’s fallout, describing their actions as “tinkering around the edges.”
He called for prioritizing efforts to address the economic damage, emphasizing the need for closer ties with the EU. “A return to the single market and customs union must be on the table,” Sir Nick added.
Meanwhile, pro-Brexit voices defended the financial arrangements. Stuart Coster, director of the Democracy Movement, argued that the £10.6 billion reflects the winding down of the UK’s EU membership costs. “These figures show the true scale of how much money the EU was costing Britain’s taxpayers and public services,” he stated.
Prime Minister Keir Starmer has attempted to reset relations with the EU after years of tense negotiations under Conservative leadership.
Recent discussions with European Commission President Ursula von der Leyen focused on fostering cooperation and renewing the Trade and Cooperation Agreement in 2024.
However, Starmer faces resistance over certain EU demands, including establishing a youth mobility scheme. The proposed arrangement would allow young people to live and work freely between the UK and EU countries for several years. Starmer has thus far declined to commit to such a scheme, complicating efforts to rebuild trust with the EU.
Liberal Democrat MP Caroline Voaden lamented the ongoing costs associated with Brexit and questioned how the funds could be better allocated. “Imagine what the government could do with that money instead. It would fill a black hole,” she said, referencing the £40 billion in new taxes introduced by Labour’s recent Budget.
The former MEP added, “During the referendum campaign, so many of us sounded the alarm over how much Brexit would cost, not just in 2016 but in the future too.“
Treasury Defends Brexit Agreement
A Treasury spokesperson defended the financial obligations, pointing out that a previous government negotiated the Withdrawal Agreement. “This settlement has been paid under successive governments since we left the EU, and the figure has reduced significantly over time,” the spokesperson said.
The Treasury spokesperson also emphasized the government’s commitment to improving UK-EU relations, citing the recent meeting between Starmer and von der Leyen.
“This government is committed to resetting our relationship with the EU, and the Prime Minister and the President of the European Commission agreed to strengthen this and put it on a more solid, stable footing.”
Treasury spokesperson
As such, while government officials highlight the declining liability, critics remain unconvinced, arguing that the payments exemplify the lasting economic and political challenges of Brexit.
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