Uncertainty of trade relations with the EU dealt a big blow to investment and business, which in the third quarter was 8% below pre-pandemic levels. Although, the trade deal between the UK and the EU has been ongoing for two years.
The UK's decision to leave the European Union, known as Brexit, has had a major impact on the UK economy. Brexit has been a drag on UK businesses and foreign companies using the UK as a European base. It weighs on imports and exports, drains foreign exchange, and contributes to labor shortages. All of which exacerbates the UK's inflation problem to the detriment of workers and the business community.