UK-EU deal: with “more ambition” economic benefits could have been “ten times greater”

EMBARGO: Immediate Release

Responding to reports that today's UK-EU deal will only add 0.2% to UK GDP by 2040, Liberal Democrat Treasury spokesperson Daisy Cooper MP said:

"This agreement marks a first step towards addressing the damage done by the Conservatives. But with more ambition, the economic benefits of today's deal could have been up to ten times greater, even within the Government's existing red lines.

"The Government has got to show far more ambition if we are to truly unlock the benefits of a renewed relationship with our European partners for communities across the UK.

"It's time to be bold, and build on these first steps. Liberal Democrats will continue to push the Government to break away from the divisions of the past, using today's agreement as a stepping stone towards a new bespoke Customs Union. This would unlock vital new opportunities for British businesses and boost our economy in a meaningful and lasting way."

ENDS

Notes to Editors:

Previous independent analysis has found that close alignment with the EU on goods and services could boost GDP by 2.2%. The House of Commons Library has estimated that if GDP was 2.2% higher, this could boost annual tax revenues by roughly £25 billion. Reporting can be found here: https://www.theguardian.com/politics/2025/may/17/lib-dems-claim-deeper-trade-deal-with-eu-would-raise-25bn-of-tax-revenue