UK PM: Brexit ‘significantly’ hurt British economy

British Prime Minister Keir Starmer urged the public to acknowledge the compromises required for a closer relationship with the European Union, emphasizing the economic costs of Brexit.

Speaking in central London on Monday, Starmer argued that the deal struck with Brussels post-Brexit “significantly hurt our economy” and warned that reducing trade frictions with the EU is essential for long-term growth and economic renewal.

The speech came shortly after talks with Brussels over Britain’s participation in the EU’s €150 billion Security Action for Europe loans-for-weapons program collapsed, due to disagreements over the U.K.’s financial contribution.

Starmer defended his government’s recent budget, insisting that measures taken were “fair, necessary and fundamentally good for growth.” He stressed the importance of lowering inflation and maintaining market confidence to ensure economic stability, while also acknowledging that ministers had considered, but ultimately rejected, a controversial increase in the headline income tax rate.

Highlighting examples of progress in EU relations, Starmer pointed to the proposed SPS agreement, which would remove border checks on plant and animal products, and ongoing discussions on an emission trading scheme.

He called on Britons to confront the realities of Brexit, accept that closer EU cooperation involves trade-offs, and adopt a pragmatic approach to rebuilding economic ties. The prime minister framed these steps as vital to supporting business growth, reducing friction, and enabling the U.K. to achieve sustainable, long-term economic renewal.