The Mayor of London has renewed calls for closer ties with the European Union after new research suggested rejoining the bloc could boost the capital’s economy by £2.9bn a year.
The independent study, commissioned by campaign group Best for Britain, found that renewed EU membership would deliver the largest economic benefit through increased trade, investment and greater protection from US tariffs.
Sir Sadiq Khan said the findings were “yet more proof” that the UK should move towards closer alignment with Europe, although the Government insists it has no plans to rejoin the EU, customs union or single market.
The research, carried out by Frontier Economics, measured the impact of different UK-EU relationships using Gross Value Added (GVA), which measures the value of goods and services produced in an economy. It estimated that full EU membership would increase London’s GVA by 0.52%, compared with 0.12% under a standalone customs union and 0.08% under a food and drink agreement. The report comes as the UK and EU continue to face tariffs imposed by US President Donald Trump.
A spokesperson for the Mayor said: “This is yet more proof – as if it was needed – that Brexit has weakened growth, pushed up the cost of living, and left the London and UK economy smaller than it would otherwise have been.
“While London remains the UK’s strongest economic region, Brexit has constrained our ability to deliver the additional growth, jobs and productivity that the capital city should be driving.”
The Mayor said he wanted the UK to move towards closer alignment with the EU, including rejoining the customs union and single market, with the public given a say on the country’s long-term relationship with Europe at the next general election.
Naomi Smith, Chief Executive of Best for Britain, said the research showed EU membership was the quickest way to strengthen London’s economy. She said: “As a new Prime Minister, Andy Burnham now has a chance to transform London’s fortunes, put money back into people’s pockets and help business flourish.”
Several London MPs also backed closer relations with Europe.
Labour MP Marsha de Cordova described cooperation with the EU as “a practical route to the growth and security that this country needs”.
Liberal Democrat MP Munira Wilson said London’s leading industries were “paying a devastating price for a broken relationship with Europe” and called for closer economic ties.
London voted strongly to remain in the European Union during the 2016 Brexit referendum, with 59.9% backing Remain.
Recent YouGov polling also found 61% of voters now support EU membership, while 26% oppose it.
However, the Government reiterated that its position remains unchanged.
A spokesperson said: “We are building a closer and ambitious relationship with our largest trading partner as we work towards the next UK-EU Summit.
“Our red lines remain clear: we are not rejoining the European Union, and there will be no return to the customs union, the single market or freedom of movement.”
