What you need to know about Best for Britain’s major new report on EU-UK trade
For years, British businesses have faced unnecessary costs, delays, and red tape when trading with our largest market: the European Union. Since Brexit, regulatory divergence has added friction and uncertainty, stifling investment and pushing up costs for consumers. But a major new study by Frontier Economics, commissioned by Best for Britain, has revealed a clear path to boosting the UK economy—closer regulatory alignment with the EU.
The findings are stark: greater alignment could grow the UK economy by 1.7% to 2.2%, recovering up to half of the economic hit caused by Brexit. Even a more limited approach—aligning only on goods—would still deliver significant benefits, particularly for regions outside London. With a rare opportunity to renegotiate our trading relationship in 2026, the Government must act. Below is a quick summary of why people are talking about the report and why you should be too.
1. Regulatory alignment means real economic gains
The report models the economic impact of aligning UK and EU regulations across goods and services. The results are clear:
Deep alignment in both goods and services could grow GDP by 1.7% to 2.2%.
Alignment on goods alone would still boost GDP by 1% to 1.5%, with manufacturing-heavy regions seeing the biggest gains.
By making trade easier, alignment could recover between a quarter and a half of the long-term GDP loss caused by Brexit, estimated at -4% by the Office for Budget Responsibility (OBR).
2. Benefits for businesses and workers across the UK
Businesses, particularly SMEs,are being strangled by Brexit-induced bureaucracy. UK exporters have to navigate different product standards, added certification costs, and border delays. Alignment would cut unnecessary red tape, making it easier to sell to the EU without costly compliance hurdles. And the economic benefits wouldn’t just stay in London. In fact, the regions that would gain the most from alignment on goods include the Midlands, Yorkshire and beyond. By helping sectors like manufacturing, these regions would see a disproportionate economic boost, creating jobs and strengthening local economies.
3. The EU wants a better deal too
The EU also stands to gain from closer cooperation. The study finds that regulatory alignment would increase EU exports by $29.7bn—almost as much as the $32.9bn boost for the UK. This mutual benefit makes an improved deal politically feasible, particularly in a post-Trump world where the EU and UK face common economic and security challenges.
4. A smarter trade strategy than post-Brexit deals
The government has spent years chasing trade deals that barely move the needle. The combined impact of the Australia and New Zealand deals is forecast to add just 0.1% to GDP over a decade—ten times less than the gains from EU alignment. Similarly, the much-debated Heathrow expansion is expected to add only 0.43% to GDP by 2050, at enormous costs, and primarily benefiting London. The message is simple: if the UK wants growth, it needs to focus on its biggest trading partner.
5. Public support is overwhelming
Our polling shows that voters overwhelmingly back closer alignment. Across Britain, support for following some EU rules to improve trade access is the most popular option in all but two constituencies. A majority of 54% of voters would accept following some EU rules and regulations to improve trade, almost double the 29% who would not.
In 426 constituencies (67%), the most popular option was to improve trade access even if it meant following all EU rules. The mandate for action is clear—voters want a government that prioritises prosperity over post-Brexit dogma.
A golden opportunity the government must seize
The Labour government has pledged to rebuild relations with the EU, and the first official review of the Brexit deal in 2026 presents a crucial moment to make that happen. As Andrew Lewin, Chair of the UK Trade and Business Commission, put it:
“The Chancellor was right to say that when faced with policy choices about how we grow the economy, the answer can’t always be no. Now is the time to say yes to closer regulatory alignment with the EU and start to undo the damage done by the failed deal of the last government.”
Aligning with the EU isn’t about reopening old Brexit debates—it’s about facing economic reality. Cutting trade barriers, boosting GDP, and creating jobs should be a no-brainer for a government serious about growth. Britain has a chance to reverse some of the self-inflicted economic harm of Brexit. It must take it.
This article first appeared on Best for Britain