Essay 2. Brexit

2. What were the main economic arguments for Brexit? Are these arguments supported by evidence? Write an essay of about 400 words to answer these questions. Reference the relevant economic outcomes of Brexit when possible.

1. Introduction: Presenting the matter

• definition: Brexit = UK leaving the EU

• Proponents of Brexit often place the emphasis of their points on the economy

• not fully support this → the UK underwent many economic and financial problems

Brexit refers to the United Kingdom’s decision to leave the European Union, finalized in January 2020 after a 2016 referendum. Supporters of Brexit often emphasized e_________ a___________, claiming that leaving the EU would allow the UK to r_______ f________ r________, control t_______ p________, and improve l________ s________. However, while these arguments were influential during the campaign, economic evidence since Brexit suggests that many of these claims were o________/exaggerated and are n____ f______ s________ by o________.

economic arguments, regain financial resources, trade policy, living standards, overstated, not fully supported, outcomes

2. Cost of EU membership

• Boris Johnson and Nigel Farage argued that the UK sent £350 million per week to the EU → this money could be spent on public services

• However, this is misleading

• Accounting for the UK rebate and EU spending inside Britain → actual net contribution was significantly lower

• leaving the EU meant losing access to EU funding for research, regional development, and agriculture

One major economic argument for Brexit concerned the c____ of E___ m_________. Prominent figures such as Boris Johnson and Nigel Farage claimed that the UK sent £____ million per week to the EU, arguing that this money could i_______ be invested in p______ s______ like the National Health Service. This figure, however, was m__________. Once the UK re____ and EU spending within Britain are ac_________ for, the UK’s a_______ n______ c___________ was s____________ l_______. Moreover, leaving the EU resulted in the l____ of a______ to EU f______ for r________, regional d___________, and a___________, which had pr__________ s________ universities, poorer regions, and farmers across the UK.

cost, EU membership, 350, instead, public services, misleading, rebate, accounted, actual net contribution, significantly lower, loss, access, funding, research, development, agriculture, previously supported

3. Trade

• Leaving EU → negotiate independent trade deals and become a more global trading nation

• Since Brexit, the UK has signed new trade agreements and joined the CPTPP, showing greater formal control over trade policy.

• However, these gains have not compensated for the loss of frictionless trade with the EU, which remains the UK’s largest trading partner.

• The Office for Budget Responsibility estimates that UK trade is around 15 percent lower than it would have been if the UK had remained in the EU.

First and foremost, Brexit would allow the UK to d________ its in___________ l_______ and establish its own t______ a___________. As stated on the UK Parliament website, the E____ was the UK’s l_____ t______ p______ in 2016 – it accounted for 4___% of UK e_______ of goods and services and 5___% of UK i_______. Overall, the UK recorded a t_____ d______ with the EU in 2016 of £8____ billion. However, the UK has a l_______ chance to establish its t_____ a________ with the r_____ of the w_____ since any member of the EU must have the EU’s per__________ to trade with any p_______ o_______ the EU’s policy. Since Brexit, owing to the less restriction by EU's regulation, the UK has signed trade deals and agreements in principle with 71 countries and one with the EU.

diversify, international links, trade agreements, EU, largest trading partner, 43, exports, 54, imports, trade deficit, 82, limited, trade agreement, rest, world, permission, partners outside

4. Living standards

• The pound fell sharply after Brexit → import more expensive → inflation

• Studies suggest that Brexit has reduced productivity and average real wages over time.

• A report by Cambridge Econometrics revealed that there are nearly two million fewer jobs overall in the UK in 2023

• The average Briton was nearly £2,000 worse off in 2023

Brexit has also affected living standards. Following the referendum, the p______ f____ sharply, making i_________ m____ e__________ and contributing to h______ in______. Studies suggest that Brexit has r______ p________ g_______ and l_____ average r_____ w_____ over time. A report by Cambridge Econometrics found that there were nearly two million f______ j______ in the UK in 2023 than there would have been without Brexit. Additionally, the a_______ Br______ was almost £2,000 w_____ o___ in 2023, reflecting the cumulative impact on household incomes.

pound fell, imports more expensive, higher inflation, reduced productivity growth, lowered, real wages, fewer jobs, average Briton, worse off

5. Conclusion

Reaffirm the stance: Brexit may bring some economic benefit

However, the points made by the proponents are too exaggerated

In conclusion, while Brexit may offer some long-term e_________ b______, such as increased policy au________, the main economic ar__________ made by its proponents were ex________ . Evidence so far suggests that the e_________ c______, in t_____, f______, and l______ s_______, have outweighed the promised gains.

economic benefits, autonomy, arguments, exaggerated, economic costs, trade, funding, living standards