Key Takeaways:

• Five years after leaving the EU, the UK grapples with the economic and political repercussions of Brexit.
• Trade with the EU is significantly affected, with businesses facing increased costs and red tape.
• Immigration trends have shifted, with non-EU immigration rising despite initial concerns about reduced migration.
• Public sentiment about Brexit has soured, with many now believing it was a mistake.
• Political leaders are exploring ways to improve relations with the EU without fully rejoining.

Five years have passed since the United Kingdom formally departed from the European Union on January 31, 2020, marking the end of a membership that lasted nearly five decades. This historic decision, which caused profound divisions within the UK, initiated a complex and often tumultuous journey for both the nation and its economic standing. As detailed in several reports, including a comprehensive analysis from BBC, the Associated Press, and South China Morning Post, the impacts of Brexit are evident across various sectors, including trade, immigration, and legislation.

Upon leaving the EU, the UK implemented several new barriers to trade that have significantly hampered its economy. Analysts generally agree that since the UK severed ties with the EU's single market and customs union on January 1, 2021, overall trade has suffered. While the UK managed to negotiate a bare-bones trade deal to prevent tariffs, new non-tariff barriers emerged, leading to increased bureaucracy and delays. For many small businesses, the inability to seamlessly trade with EU partners has led to considerable economic losses, with the Office for Budget Responsibility estimating that UK exports and imports will remain about 15% lower in the long run than if the country had stayed within the EU.

Some businesses have resorted to setting up operations in EU countries to navigate the complexities of trade regulations. For example, Lars Andersen, who runs a company shipping goods to over 150 countries, has established a base in Ireland to manage exports efficiently. Others, like Julianne Ponan, have redirected their focus from the EU to markets in the Middle East and Australia, forging new paths amidst the turmoil, albeit with significant initial setbacks.

Immigration has also seen an unexpected twist post-Brexit. Initially anticipated to decrease as a primary reason for leaving the EU, immigration from non-EU countries has surged. The introduction of a new immigration system in January 2021 required work visas for EU citizens, but the UK has seen an increase in visas granted to workers from other regions, prompting discussions around the dichotomy of reduced EU immigration versus rising global migration.

Public sentiment towards Brexit appears to have soured over the years, with many now viewing the decision as a misstep. This shift in perspective is not lost on political leaders. Labour leader Keir Starmer, elected in July 2024, is advocating for a 'reset' of UK-EU relations while excluding any possibility of rejoining the customs union or single market. His plans focus on enhancing collaboration in areas like law enforcement and recognition of professional qualifications.

The EU, meanwhile, remains cautious and occupied with its own domestic challenges, as it navigates a rise in populism. Both sides are keen to foster improved communications, yet the scars of past negotiations linger, making any substantial alignment slow and delicate. As the UK moves further away from the EU, the path ahead remains uncertain but suggests a gradual warming of relations over time.

The implications of Brexit are far-reaching, affecting economic policies, immigration patterns, and international relations. Each passing year will bring further insights into whether the UK is indeed better off outside the EU, as both the nation and the bloc seek to redefine their future interactions.