The impact of the Brexit referendum on British households is stark – a decade since the vote, it's clear that leaving the European Union has come at a substantial cost. Economists estimate that UK families are £1,500 to £2,000 worse off annually due to stagnant business investment and reduced productivity growth.
A key indicator of this economic shift is the pound sterling's performance. The currency plummeted by 10% in June 2016, its largest ever one-day fall, and has yet to recover its pre-Brexit value. Today, it stands at around $1.34 against the dollar and €1.15 against the euro – significantly down from $1.50 and €1.31 respectively just after the polls closed. This sustained weakness has increased the cost of imported goods, driving inflation and further squeezing household finances.
Official projections paint a bleak picture: according to the Office for Budget Responsibility, the UK's national income is expected to be 4% lower over a 15-year period due to Brexit. Meanwhile, research from the US National Bureau of Economic Research suggests that UK GDP per head is between 6% and 8% lower than it would have been without Brexit. Notably, until 2016 Britain's economic growth closely mirrored that of 33 other advanced economies – but since then a significant divergence in output has emerged.
The trade landscape has also undergone a seismic shift. Since the end of the EU transition period on 31 December 2020, UK goods exports have lagged behind those of G7 nations. The EU remains Britain's largest trading partner, accounting for 41% of all UK exports and 49% of total imports in 2025 – valued at £385 billion and £474 billion respectively. While the Foreign Office does not currently advise against travel to EU countries, it's essential that travellers are aware of new customs regulations and potential delays at borders.