Bank of England Governor Andrew Bailey stated on Tuesday, November 10, 2026, that the United Kingdom would benefit economically from closer trading ties with the European Union. In a statement to the BBC, Bailey noted that while he does not take a formal position on Brexit, he believes that trading more openly with the UK's nearest neighbors would be beneficial for national growth.
The Governor's remarks come as Prime Minister Andy Burnham prepares for a summit in Brussels on November 20 to discuss a new relationship with the EU. The Prime Minister is considering options that include rejoining the bloc, though he has currently maintained policy lines that exclude rejoining the customs union, single market, or restoring the free movement of people.
Economic data indicates that UK businesses have spent £7.7 billion over the last four years to manage post-Brexit administrative requirements. According to Andy Burnham, new agreements expected later this month could increase the UK's Gross Domestic Product (GDP) by approximately 0.4 percent. This figure is contrasted with an estimate from Stanford University professor Nick Bloom, who calculated an 8 percent negative impact on GDP resulting from Brexit.
The proposed policy shift affects UK business owners and consumers by altering the costs and rules associated with international trade. British firms have already paid a total of £7.7 billion in red tape costs over four years. If a new agreement is reached to remove border checks on food and drink, as Prime Minister Burnham has suggested, retailers and consumers could see changes in the availability and pricing of imported goods, while citizens under age 35 may regain the ability to work or study in Europe under a proposed youth mobility scheme.
The scale of the economic impact remains a point of debate. While the advocacy group Best for Britain projects a potential GDP increase of £92 billion through closer ties, official estimates for the upcoming summit suggest a 0.4 percent growth boost. Additionally, the Bank of England raised interest rates last Thursday—the first such increase in three years—to slow inflation, with Governor Bailey warning that the war in Iran could lead to further hikes.
The next steps center on the November 20 summit in Brussels, where the Prime Minister intends to launch discussions regarding the UK's long-term relationship with the EU. These talks are expected to focus on stripping away specific border checks and establishing the youth mobility framework. While the current government maintains its lines against rejoining the single market, the Prime Minister has indicated that future options, including rejoining the EU, could be presented to the public in a future election manifesto.