Ten years on from the momentous Brexit referendum, the repercussions of the UK’s decision to leave the European Union are still being felt across various sectors of society and the economy. The 2016 vote, which saw 52% in favour of leaving, instigated a protracted political saga culminating in the official exit on January 1, 2021. This article explores five significant symbols from the referendum that encapsulate the complex legacy of Brexit.
The Automotive Industry: A Mixed Legacy for Sunderland
The fate of Nissan’s Sunderland plant became emblematic of the broader concerns surrounding Brexit. In the lead-up to the referendum, the factory was seen as a beacon of British manufacturing, with proponents viewing its success as a testament to the UK’s global trading capabilities. Conversely, those advocating for remaining in the EU warned that leaving could jeopardise jobs and investment.
During the referendum, Sunderland’s electorate voted 61% in favour of Brexit, a decision that would soon test their faith. Carlos Ghosn, then CEO of Nissan, was vocal about the benefits of remaining in the EU for job security and trade. Following the vote, Nissan leveraged the uncertainty surrounding Brexit to secure government support, receiving £61 million in state aid to facilitate investment in new models, which was later supplemented by an additional £101 million in late 2022.
Despite this assistance, the factory’s output has significantly declined — from 507,000 cars in 2016 to just 273,000 last year. The shadow of potential tariffs loomed large until the UK signed a trade and cooperation agreement with the EU in 2021. However, the agreement introduced additional non-tariff barriers that have further complicated trade for the automotive sector. While Nissan recently secured a potential deal to manufacture cars for Chinese company Chery, the long-term effects of Brexit on the UK automotive industry remain a significant concern.
The Fishing Industry: Unfulfilled Promises
The fishing industry was another focal point in the Brexit debate, with many fishermen believing that leaving the EU would restore control over UK waters and fishing quotas. The notable image of Nigel Farage leading a flotilla of Brexit supporters against a pro-Remain contingent led by Bob Geldof highlighted the passionate sentiments surrounding this sector. Despite representing only 0.3% of the UK economy, fishing was framed as a major prize of Brexit.
However, the reality post-Brexit has left many fishers feeling let down. The 2020 agreement allowed EU vessels to continue fishing within British waters, leading to feelings of betrayal among those who believed they would gain exclusive access. The recent extension of access rights up to 2038 under Keir Starmer’s leadership further incensed those in the industry. The UK’s distant waters fleet has dwindled significantly, and the complications introduced by new immigration rules have made it increasingly difficult to recruit skilled workers.
In stark contrast to the anticipated benefits, the UK now imports £4.1 billion worth of seafood compared to just £2 billion in exports, revealing a troubling imbalance exacerbated by the complexities of post-Brexit trade.
The Passport Symbolism: More than Just Colour
One of the tangible outcomes of Brexit was the introduction of the blue passport, which was rolled out in 2020 amidst the Covid-19 pandemic. Once a symbol of national pride for Brexit supporters, the reality is that 70% of the 54 million passports in circulation remain the old burgundy colour, which will largely fade by 2030.
While this change was celebrated by some, the practical implications of Brexit have led to longer queues and increased costs for UK travellers. New regulations, such as the EU’s entry-exit system (EES), have complicated travel to Europe, turning the once straightforward process into a cumbersome experience. As a result, the anticipated benefits of Brexit have been overshadowed by heightened travel frustrations and additional charges for UK citizens.
The Care Sector: Recruitment Challenges
The impact of Brexit has also been acutely felt in the care sector, where many EU nationals previously filled vital roles. With the Brexit debate creating an atmosphere of uncertainty, the recruitment of EU workers became increasingly difficult. Nadra Ahmed, chair of the National Care Association, noted a palpable sense of unease among European colleagues in the lead-up to the referendum.
The number of unfilled vacancies in social care has surged from 78,000 to 132,000 in just five years. Although the government has since introduced measures to facilitate the recruitment of overseas workers, the shift has resulted in a significant decline in EU nationals filling these roles. The focus has now shifted to non-EU applicants, with countries like Nigeria, India, and Zimbabwe becoming more prominent sources of new workers.
Despite these efforts, many care providers still struggle to attract a workforce willing to accept low wages. The sector remains vulnerable, with chronic shortages threatening to undermine the quality of care.
The City of London: Financial Stability Amidst Uncertainty
In the days leading up to the Brexit referendum, fears were rife that London’s status as a financial hub would be jeopardised. The immediate response saw some developers, such as those behind the 22 Bishopsgate project, halt their plans due to uncertainty. Financial institutions braced for potential relocations, with estimates suggesting that up to 75,000 jobs could be at risk.
However, contrary to initial predictions, the City has demonstrated resilience. By the end of 2022, it was reported that only 7,000 jobs had been relocated to other European cities. The ongoing adaptation of financial firms to the new regulatory landscape has allowed the sector to maintain its vitality, and the completion of 22 Bishopsgate in 2020 signified a renewed confidence in London’s financial future.
Why it Matters
The legacy of Brexit is multifaceted, touching every corner of British society and the economy. From the automotive and fishing industries to travel and care, the ramifications of the 2016 referendum continue to unfold, revealing a complex tapestry of challenges and opportunities. Understanding these symbols is crucial for navigating the current landscape and preparing for the long-term effects of Britain’s departure from the EU. As the UK strives to carve out its identity in a post-Brexit world, the lessons learnt from these sectors will play a pivotal role in shaping future policies and societal cohesion.
