UK-EU trade deal could add £90 billion to economy

The UK government says its new trade deal with the European Union could boost the British economy by as much as £90 billion by 2040.

Treasury Minister Darren Jones revealed this figure during an interview with Sophy Ridge, explaining it represents the total growth expected over 25 years, averaging about £9 billion in extra economic output annually.

This estimate far exceeds earlier projections, including those from Labour leader Sir Keir Starmer, who previously suggested a more modest £9 billion increase overall. The government presents the deal as a major breakthrough that will ease trade barriers and help British businesses regain access to European markets disrupted by Brexit.

Prime Minister hailed the agreement as a sign that “Britain is back on the world stage.” The deal promises smoother exports and renewed cooperation with the EU, a vital trading partner.

However, the deal has not gone without criticism. Key concerns focus on the extension of EU fishing rights in British waters for 12 more years—a move that has sparked backlash from Conservative and Reform party members alike. Many view this as a significant concession that undermines the UK’s control over its own fisheries.

Opposition voices warn that the deal risks dragging the UK back under Brussels’ influence. Shadow Business Secretary Andrew Griffith argued it forces Britain into a “rule-taker” role, having to accept EU regulations without influence, while also conceding on fishing—a deeply sensitive issue for coastal communities.

The government faces a delicate balancing act: securing economic benefits from closer ties with Europe while managing political fallout over sovereignty and regulatory independence. As trade talks evolve, the real test will be whether the deal delivers the promised growth and reassures sectors that feel left behind.

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