Britain has lost an estimated £74 billion in goods exports since leaving the European Union’s single market and customs union, according to new research that suggests Brexit has accelerated the country’s shift toward a services-based economy.
A report by the Resolution Foundation found that the UK’s share of goods exports fell by around 20 percent between 2019 and 2024, marking the steepest decline among G7 nations. The findings raise questions about efforts to revive large-scale manufacturing and reindustrialisation, a policy goal recently promoted by Greater Manchester Mayor Andy Burnham.
The think tank said some of Britain’s most important industrial sectors, including automotive manufacturing and pharmaceuticals, have experienced significant setbacks since the UK formally left the EU’s trading framework in 2020. Researchers argued that the decline is primarily linked to Brexit-related trade barriers rather than rising energy costs or increased competition from Chinese imports.
According to the report, Britain has slipped from being the world’s 11th-largest exporter of goods to 14th place. Several sectors that were once regarded as strengths have lost competitiveness in international markets, including road vehicles, chemicals, dairy products, non-ferrous metals and livestock exports.
Sophie Hale, research director at the Resolution Foundation, said the UK had lost ground in products that continue to see strong global demand. She noted that medicines, electronic microcircuits and data processors are among the goods where Britain’s position has weakened despite growing international markets.
Business groups have also highlighted ongoing challenges. A survey conducted by the British Chambers of Commerce found that 54 percent of exporters believe the post-Brexit Trade and Cooperation Agreement has made it more difficult to sell goods into the EU. Only 16 percent said the agreement had helped expand their export business.
The impact has been particularly severe for smaller firms, many of which have struggled to cope with increased paperwork, customs requirements and regulatory checks when trading with European markets.
While goods exports have declined, services have become a larger part of Britain’s international trade profile. Services now account for 59 percent of total exports, an increase of 11 percentage points since 2019. Areas such as finance, technology and professional services have remained relatively resilient despite Brexit-related changes.
Hale argued that the growing importance of services should not necessarily be viewed negatively, saying many wealthy economies rely heavily on service exports. She suggested policymakers should focus on strengthening sectors where Britain retains a competitive advantage while identifying areas where future growth is realistic.
The findings arrive amid continuing debate over the UK’s economic relationship with the EU. While the Labour government has proposed closer cooperation in selected areas, neither major political party supports rejoining the single market. Economists remain divided on how much additional growth could be achieved through deeper alignment with European regulations, though many agree that trade frictions continue to weigh on British exporters.
