HomeIndices AnalysisNew Report Reveals Brexit U-Turn Impact on UK Business

New Report Reveals Brexit U-Turn Impact on UK Business

A growing appetite for rejoining the European Union is stirring debate across the UK — not just in Parliament, but in boardrooms, logistics hubs, and business parks nationwide. With public support for EU membership now at 60%, the country appears to be quietly pivoting back toward Brussels, prompting questions about what this shift could mean for key industries.

Public Opinion Is Shifting — and Fast

According to a recent YouGov poll, six in ten Britons would vote to rejoin the EU if a referendum were held today — the highest level of support recorded since Brexit. The shift appears to be driven by both practical frustrations and political disillusionment, particularly around issues like border control and economic uncertainty.

In the first half of 2025 alone, over 20,000 migrants arrived in small boats via the English Channel — a 48% increase from the same period in 2024. As the government struggles to deliver on post-Brexit promises of sovereignty and security, many are beginning to question whether leaving the EU has truly delivered the control it promised.

A Quiet Pivot Back Toward Europe?

While full EU membership is not officially on the table, recent moves by Keir Starmer’s government suggest a softening stance. The “One In, One Out” migration deal with France — the UK’s first bilateral asylum agreement since Brexit — marks a return to structured European cooperation. Ongoing discussions over fishing rights, regulatory alignment, and cross-border data flows further indicate that Britain may be preparing for a deeper reset with its continental neighbours.

Meanwhile, search interest in “EU regulations” surged in June 202, reflecting rising public curiosity — and concern — about what realignment might mean in practice. Could Britain hit “undo” on Brexit without reopening old wounds? 

Business at a Crossroads

To answer this question, a recent industry analysis set out to assess how ten major UK sectors could be affected if Britain were to rejoin the EU or formally re-align with its regulatory frameworks. The data offers a sector-by-sector breakdown of winners, losers, and industries that may struggle to adapt.

According to the findings, seven out of ten core sectors would likely benefit from rejoining the EU. These include:

Healthcare: Regaining access to the European Medicines Agency (EMA) could fast-track drug approvals and reduce costs for medical manufacturers.

eCommerce: Rejoining would eliminate the post-Brexit VAT maze, simplify customs processes, and speed up cross-border delivery times.

Construction & Tech: Alignment with GDPR and CE marking standards would reduce red tape and support international expansion.

Higher Education & Logistics: Labour mobility and access to EU research funding would resume, bolstering talent pipelines and supply chains.

“Brexit Red Tape Is Still Hurting Us”

Many businesses continue to feel the sting of Brexit-related bureaucracy. Sean Paterson, founder of UK-based wellness brand Get Fung’d Up, highlights the hurdles facing exporters:

“Every added form, fee, and delay slows our growth and complicates customer service. Rejoining the EU would help streamline operations and rebuild confidence in the single market.”

This sentiment is echoed across export-heavy industries, particularly in manufacturing, food, logistics, and retail, where delays, duplicate paperwork, and inconsistent regulations have become the norm.

Construction: Still Struggling to Fill Gaps

Even sectors less directly tied to regulation are feeling the long-term effects. Dan Sillito, Managing Director at Midland Fire Security Services, points to labour shortages in construction:

“Freedom of movement made it easier to fill roles in areas like fire safety. We’re now relying on domestic upskilling, but the pipeline isn’t strong enough. Rejoining might ease the pressure — but long-term investment in vocational routes is essential either way.”

The sector also faces challenges related to product certification, particularly when working with materials or machinery imported from the EU, where divergence from CE standards continues to cause confusion.

Agriculture & Finance: Facing Rollbacks?

Not all sectors stand to benefit, however. Agriculture and finance may see hard-won freedoms reversed under EU rules.

Agriculture: The UK currently permits certain gene editing techniques and pesticide use that remain banned in the EU. Rejoining would require a rollback on those freedoms, affecting innovation and yield.

Finance: Divergence in crypto regulation, fintech licensing, and data processing has created a more liberal framework in the UK. Returning to the EU’s more cautious regime may impact competitiveness.

The vaping and tobacco industries — previously buoyed by looser UK laws — could also face tighter rules under the Tobacco Products Directive, though this remains a more niche issue in the broader context of regulatory realignment.

The Rejoin Readiness Table: More Than Politics

Each industry was given a “Rejoin Readiness Score” (ranging from 1 to 5 stars) based on how easily it could adapt to EU standards. While most scored three stars or higher, a few sectors are far from prepared. What’s clear is that this isn’t a purely political conversation — it’s a deeply practical one.

Where Does This Leave Britain?

If Britain is indeed on a quiet path back toward Brussels, the next few years will be critical. Businesses need clarity, stability, and time to prepare — particularly if regulatory realignment becomes part of formal policy.

Yet, despite mounting evidence of change, few public conversations are happening around business preparedness or sector-specific impacts. The assumption that rejoining would be a political reset, rather than a structural upheaval, risks leaving companies unprepared for what could be a second economic pivot.

See how Brexit’s reversal could reshape UK industries — explore the full sector breakdown

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