Five Years of Brexit: How the U.K. Economy Has Done, and What’s Next

Reflecting on Post-Brexit Britain

The UK left the European Union more than five years ago. Brexit was one of the most consequential economic and political changes in modern British history, and its lasting effects have yet to fully become clear.

“My sense was that within four to six weeks businesses resolved some of the key uncertainties facing them,” said Madeleine King, head of business development for the UK and Ireland at RSM. “From trade and labour markets to investment flows and consumer prices, the UK economy, and British businesses, have been forced to acclimatise rapidly to a new reality outside the EU.”

In this article, we look at how Brexit has shaped the economy to date, which sectors have been hardest hit, and what the future holds for businesses and consumers in 2025 and beyond.

💡 Trade and Supply Chains

Changing trading dynamics were one of the most immediate effects of Brexit.

EU trade barriers: While a free trade agreement removed tariffs on the vast majority of goods, new customs checks and paperwork raised costs for UK businesses selling into the continent.
Falling exports: Some sectors, such as food and fisheries, experienced a steep drop in volumes sold abroad in the first years after Brexit.
Market diversification: The UK has sought to boost trade outside Europe and struck agreements with countries including Australia, Japan and members of the CPTPP.

📊 UK exports to non-EU destinations had been steadily increasing by 2025, but the EU is still the UK’s largest trading partner.

🧑‍💼 Labour Market Shifts

Brexit also reconfigured the UK’s labour market:

End of free movement caused staff shortages of EU workers in hospitality, farming and healthcare.
Skills shortages pushed up wages in some sectors.
Immigration reforms introduced a points-based system, prioritising skilled workers from the rest of the world.

Shortages created short-term disruption, but they also motivated investment in automation and training for UK-born workers.

💷 Investment and Business Confidence

The prospect and aftermath of Brexit initially dampened business investment.

Financial services: A handful of banks moved some staff and operations to EU hubs such as Frankfurt and Dublin.
Foreign Direct Investment (FDI): The UK remains attractive, but competition from EU nations has intensified.
Innovation focus: Government incentives are pushing the UK to become a leader in green technology, life sciences and fintech.

💬 While London is still Europe’s financial capital, Brexit hastened efforts to spread the UK’s economic strengths across regions and sectors.

🛒 Consumer Prices and Inflation

Brexit affected consumer prices and, in some cases, helped to push them higher in the UK through:

Higher import costs caused by customs checks and a weaker sterling.
Labour scarcity driving up wages in food production and logistics.
Energy costs rising amid trade frictions.

Though global issues (the pandemic and the war in Ukraine) also stoked inflation, Brexit amplified the impact on British households.

📊 Regional Impacts

The effects of Brexit vary across the UK:

Northern Ireland faces unique impediments under the Northern Ireland Protocol, including checks on goods moving from Great Britain.
Scotland has reopened the independence debate, with EU membership a central dividing line.
Manufacturing-heavy regions in the Midlands and the North felt stronger effects than London and the South East, which pivoted more quickly to services and innovation.

🌍 The UK’s New Global Role

Outside the EU, the UK is trading as an independent nation.

New free trade pacts aim to open doors to fast-growing markets in the Asia-Pacific.
The UK is positioning itself as a leader in climate policy (COP summits) and AI governance.
Balancing global ambitions while keeping EU relations smooth remains a delicate challenge.

🛠️ Opportunities Emerging Post-Brexit

Despite early disruptions, Brexit has brought fresh opportunities:

Domestic agriculture gains and “buy British” movements.
Reshoring of supply chains to reduce reliance on EU logistics.
A shift towards a knowledge-based, innovation-driven economy, with heavy investment in digital infrastructure and green industries.

These changes could make the UK more resilient in the long term—if businesses and policymakers keep adapting.

⚠️ Challenges Still Ahead

Trade friction with the EU remains a drag for small businesses.
Regulatory divergence: balancing flexibility with global competitiveness.
Productivity gap: the UK still lags behind other G7 nations.
Political uncertainty: questions persist over the futures of Scotland and Northern Ireland.

📚 Practical Implications for UK Consumers and Businesses

For consumers:

✅ Prices on imported goods will probably rise.
✅ Look for opportunities in UK-made products and services.
✅ Monitor exchange-rate movements when travelling or shopping abroad.

For businesses:

✅ Tap into non-EU markets via new trade agreements.
✅ Invest in digital and green innovation.
✅ Prioritise workforce training to address labour shortages.

🏁 Conclusion: Adjusting to a Life Outside the EU

The UK economy has been transformed by Brexit. Even as problems persist—from higher costs and trade barriers to worker shortages—the last five years have also revealed resilience and innovation.

The extent to which the UK can embrace external trade opportunities, invest in future industries, and maintain a balanced relationship with the EU will determine whether Brexit becomes a long-term drag on potential or a launch pad for growth.

For workers, businesses and households alike, success will depend on flexibility, strategic planning and a willingness to navigate the realities of a post-Brexit Britain.