Monday, 26 January 2026

BREXIT vs. Paranoia 0-3 (The cost of this "love")

It seems that every 3, 6 and 9 years’ time I do have time to look into long forgotten facts and check what has brought this nation further. I want people to learn, however there is no magic potion for those who don’t want to. With almost 10 years behind our back after the referendum, I think we now wholeheartedly can say that Brexit was a royal failure, and as always, Paranoia leads with another point (!) again – what a surprise… However, before anyone turns around and tells me I have lost it, I will let the numbers and facts speak to all of you, and I am inviting you to stay with me all the way to the end, because I guarantee it will be worth it.

First let’s start at the very beginning to have an even clearer picture on the actual background, just a smooth reminder for those who have forgotten and even smoother reminder for those who voted and had no clue for what (oh trust me, it did happen in many cases!).
 
WHERE IT ALL STARTED
 
PART 1: WHY THE REFERENDUM WAS CALLED?
 
Based on David Cameron's Official Reasons (January 2013 announcement) in January 2013, the referendum promise was for the following factors:
  1. Party management - To settle the growing Eurosceptic faction within the Conservative Party
  2. Democratic legitimacy - The UK had never voted on EU membership since major treaties changed the nature of the organization (no referendum since 1975)
  3. Renegotiation opportunity - A chance to renegotiate Britain's relationship with the EU and then put the new deal to voters
  4. Electoral strategy - To win back Conservative voters who were drifting to UKIP (a political party for those who have forgotten)
The Real Underlying Pressures instead were the ones below. Do note, these are well documented and do your own research before believing anything that gets listed in the followings, as I know it will sound unbelievable…:
  1. Internal Conservative Party rebellion - In June 2012, over 100 Conservative MPs signed a letter demanding a referendum commitment. In 2011, 81 Tory MPs defied Cameron's three-line whip to vote for a public-backed referendum initiative.
  2. UKIP's rising popularity - By 2013, UKIP was polling at 10% nationally, though importantly, Cameron made the referendum commitment before UKIP became a major electoral threat.
  3. Growing Euroscepticism - Long-building sentiment within the Conservative Party dating back to Thatcher's era, fuelled by concerns about sovereignty, immigration, and EU regulations.
  4. Cameron's miscalculation - He believed he could win the referendum easily and use it to silence critics permanently. He vastly underestimated both the Leave campaign's effectiveness and his own party's willingness to defy him.

 
PART 2: THE LEAVE CAMPAIGN ARGUMENTS (PRE-REFERENDUM 2016)

The Main Campaign Messages:
1. Immigration Control - "Take Back Control" (!)
  • This was the dominant theme throughout the campaign
  • Claims that EU free movement was overwhelming to public services
  • Warnings about Turkey/ Turkiye joining the EU (with implicit fears about Muslim immigration)
  • The infamous poster showing refugees with "Breaking Point" messaging
  • Leavers argued that immigration was causing "unsustainable pressures on our public services"
2. NHS Funding - The £350 Million / week Claim
  • The iconic red bus slogan: "We send the EU £350 million a week, let's fund our NHS instead"
  • This figure was demonstrably incorrect (the actual net contribution was much lower)
  • The claim was designed to "neutralize" economic arguments, according to campaign director Dominic Cummings
  • It suggested building a new fully-staffed hospital every week with the "savings"
3. Sovereignty - "Take Back Control"
  • Nearly half of Leave voters cited wanting "decisions about the UK to be taken in the UK" (!)
  • Claims that EU judges controlled British citizenship
  • Arguments about "unelected Brussels bureaucrats" making UK laws
  • The European Court of Justice undermining British sovereignty
4. Economic Arguments
  • EU membership prevented Britain from making its own trade deals with major economies (US, India, Japan)
  • EU bureaucracy and red tape harmed small businesses
  • EU regulations were inflexible and slow
  • Common Fisheries Policy harmed British fishing industry
5. Security Claims
  • Britain's borders would be more secure outside the EU
  • Full border controls would improve domestic security
 
There were effectively two Leave campaigns running in parallel. This division was actually a strategic one - it allowed different messages to reach different voter groups, what academics call a "flanking manoeuvre."
  1. Vote Leave – was led by Johnson and Gove, presented a more "liberal" pro-Brexit message focused on sovereignty, NHS funding, and managed immigration
  1. Leave.EU - Led by Farage, used more explicitly anti-immigrant rhetoric and the "Breaking Point" poster
Based on research immigration and sovereignty were deeply intertwined in voters' minds - they weren't separate issues, so building the momentum on these, the campaign successfully linked:
  • Immigration → as to putting a strain on NHS
  • Immigration → as to loss of control
  • EU membership → the inability to control borders
  • Turkish EU membership → Muslim immigration threat
  • Sovereignty → immigration control
And the fuel on fire was the refugee crisis of 2015-2016, which provided perfect timing for these messages to land with maximum impact.

Key Politicians Heavily Involved:

VOTE LEAVE (Official Campaign Politicians – nowadays either of them barely visible, are they even alive?):
  • Boris Johnson - Then-Mayor of London, became the face of the campaign after announcing support on February 21, 2016
  • Michael Gove - Justice Secretary and Lord Chancellor
  • Gisela Stuart - Labour MP, served as chairman of Vote Leave
  • Dominic Cummings - Campaign Director (strategist behind the scenes)
  • Iain Duncan Smith - Secretary of State for Work and Pensions
  • Chris Grayling - Leader of the House of Commons
  • Priti Patel - Minister of State for Employment
  • Andrea Leadsom - Minister at Department of Energy and Climate Change
  • Nigel Lawson - Former Chancellor (interim chairman)
  • Matthew Elliott - Co-founder with Cummings
LEAVE.EU / UKIP (Unofficial parallel campaign):
  • Nigel Farage - UKIP Leader (now known for Reform campaigns), the face of the more nativist messaging
  • Aaron Banks - Zee wealthy insurance magnate who poured millions into Leave.EU's controversial advertising
Now that we have the summary of who and why, let’s check next for how much? Money always talks, and this time too. However, do stick around to see that money can scream too (almost literally).

THE TOTAL COST OF THE BREXIT REFERENDUM CAMPAIGN

PART 1: OFFICIAL GOVERNMENT COSTS TO RUN THE REFERENDUM was: £129.09 million, which breaks down as follows:

  1. Administration of the poll, £94.5 million: This involved the running of over 40,000 polling stations, issuing and opening postal votes, counting the votes and the costs of staff for Counting Officers across the UK
  1. Designated campaign grants, £1.2 million: £600,000 each to the two designated lead campaigns (Vote Leave and Britain Stronger in Europe). The intention of these sums were to reflect the equivalent value given to campaigns in the 1975 referendum.
  1. Campaign mailings, £25.4 million: Free” Royal Mail delivery for each designated campaign to send materials to every household in the UK, which  covered only delivery not the production costs.
  1. Electoral Commission public awareness campaign, £6 million: Including multimedia campaign starting May 15, 2016, the advertising, voting guides, public relations informing people how to vote (of course not on who to, just how…).
  1. Government pro-Remain leaflet: £9.3 million (separate from above): 
    • The cost of production was £458,500
    • then £5.94 million to print and deliver to 27 million homes
    • and finally £2.89 million for the accompanying website and digital promotion
This was actually highly controversial - Leave campaigners argued it gave Remain an unfair advantage as the government wasn't treated as a campaign group and could spend outside the limits. Funny thing is that leave campaigners, who spent the most also argued the most. Wonder why?

 
PART 2: REPORTED CAMPAIGN SPENDING (ALL GROUPS) was: £32.64 million

From this the REMAIN CAMPAIGNS costs were £19.31 million (Britain Stronger in Europe spent £6.77 million and Other Remain groups: ~£12.54 million) and the LEAVE CAMPAIGNS: £13.33 million (Vote Leave official figures: £6.74 million; Leave.EU: ~£700,000 which was their spending limit as well; and other Leave groups: ~£5.89 million)
Political Parties spent £9.03 million total. 
Each had a spending limit based on their 2015 general election vote share:

  • Conservatives: £7 million limit
  • Labour: £5.5 million limit
  • UKIP: £4 million limit
  • Liberal Democrats: £3 million limit



PART 3: ILLEGAL OVERSPENDING & FINES – let's call it the top layer

Here's where it gets particularly interesting - and scandalous too:
VOTE LEAVE VIOLATIONS:
  • Actual spending: £7,449,079 (from this the legal limit was £7 million and overspending was nearly half a million pounds over the limit)
One really might wonder how they did it? Simple, they funnelled £675,000 through a fashion student named Darren Grimes and his "BeLeave" campaign.                      
  • BeLeave was supposed to be independent but was operating from Vote Leave's office
  • Vote Leave built BeLeave's website, provided infrastructure, filming facilities, legal support
  • All the money went directly to AggregateIQ (a Canadian tech firm) for targeted Facebook ads
  • The Electoral Commission found "significant evidence of joint working" under a "common plan"
  • This should have counted toward Vote Leave's spending limit
Vote Leave also submitted an incomplete and inaccurate spending report:
  • Had nearly £234,501 reported incorrectly
  • Missing invoices for £12,849.99 of spending
The case was referred to Metropolitan Police for criminal investigation and eventually they paid the fine in March 2019 after initially appealing.
The fines imposed to this were in total value of £81,250:
  • £61,000 (£20,000 of this for refusing to cooperate with investigation)
  • Darren Grimes/BeLeave: £20,000 (maximum individual fine allowed)
  • Veterans for Britain: £250
LEAVE.EU VIOLATIONS:
They failed to report at least £77,380 in spending (what a surprise, or not…). It might have been more, however presume no one really could bother after the VOTE LEAVE mess, and the reason of not reporting the spending was that this would have pushed them over their £700,000 limit. They were fined for this conduct with £70,000 which later was reduced to £66,000 on appeal.
Then in February 2019 they were fined again in value of £120,000 for data protection breaches (using Eldon Insurance customer data for political purposes – this just shows that we can indeed “count on our insurance company” when it comes to politics). This was referred to National Crime Agency and Metropolitan Police where no criminal charges were brought due to insufficient evidence (Just think about it, they are fined, yet there is no evidence for prosecution…).
 
OTHER FINES AND VIOLATIONS:
  • Liberal Democrats: they had inadequate receipts and invoices in estimated value of £18,000
  • Britain Stronger in Europe (Official Remain Campaign, also renamed to Open Britain): Fined £1,250 in December 2017 for failing to provide invoices and for declaring some spending in aggregate rather than as individual payments.
  • European Movement UK (Pro-Remain Group): Fined £8,750 in October 2017 for submitting an "incomplete and inaccurate" spending return, which included missing payments and incorrectly included other payments.
  • Best for Our Future (Pro-Remain Group): Fined £2,000 in 2018 for inaccurate reporting.
  • Campaign for an Independent England (Pro-Remain/Pro-EU Group): Fined £1,000 for a "significantly late" return.
  • DUP (Democratic Unionist Party): Fined £4,000 for inaccurate spending returns, which included duplicated payments.
  • Trade Unions (e.g. UNISON £ 1,500, GMB £ 500): The Electoral Commission reported that two trade union donors were fined for inaccurate reporting, sources citing different figures, so go figure.  
Now, based on the above findings one really should raise their eyebrow and figure out whether the incompetency of correct filings was a spreading disease, or in every case genuine mistake happened? Except for Campaign of an Independent England, I would bet my penny that it was clear and early signs of a “wild disease” spreading. Just look at the reports related to income and exspenditures submitted by local authorities and political parties in the past 5 years, I think already with surface scratching the obvious will be clearly visible.  

 
PART 4: LEGAL COSTS FROM INVESTIGATIONS – digging under the surface layer

What majority of the population doesn’t seem to realise that there is more to the actual costs than what is shown at first. So in the following we can’t miss out on the Electoral Commission’s legal costs (and would propose having a look at this report and eye a bit with those pension benefits, just rest a bit your brain whilst soaking the reality in)
·        Approximately £228,000 in legal fees investigating Darren Grimes
·        Plus £300,000 paid to Grimes when he successfully appealed his fine in July 2019
·        Vote Leave paid the Commission £180,000 in legal costs
·        Ongoing investigations and court cases through 2018-2019.
  
THE GRAND TOTAL (Direct Measurable Costs)
Conservative estimate: £170-180 million
  • £129.09 million (official referendum administration)
  • £32.64 million (campaign spending)
  • £9.3 million (government leaflet)
  • ~£1-2 million (fines and legal costs)

WHAT IS NOT INCLUDED?
  1. Opportunity costs (!) - Government officials' time spent on referendum instead of other work
  2. Economic impact during campaign - Pound sterling volatility, FTSE fluctuations
  3. Private sector costs (!) - Businesses preparing for either outcome
  4. Media coverage costs (!) – Even though broadcasters had legal obligations to cover it
  5. The actual IMPLEMENTATION costs of Brexit - Which would run into billions

THE SPENDING LIMITS CONTROVERSY
Here's what really is a particularly problematic scenario: the maximum fine the Electoral Commission could impose was £20,000 per offence.
Think about that: Vote Leave overspent by £449,079 and was fined £61,000. That's only 13.6% of their illegal overspending. From a cost-benefit perspective, it was financially rational to break the law.
As legal expert Jolyon Maugham QC argued: "Financial penalties must be 'swingeing to create a real deterrent.'"
The spending rules were designed to:
  • Prevent an arms race between campaigns
  • Stop wealthy donors from buying elections
  • Ensure a level playing field
But the system royally failed. The fines were too small to act as deterrents, and the Electoral Commission was severely underfunded and understaffed.
KEY TAKEAWAY
The referendum itself cost approximately £170-180 million in direct, measurable costs. However when the law allows to break the rules with little or no accountability for the political parties using sophisticated schemes to circumvent spending limits for example, and then imposing fines on them which are a fraction of the illegal overspending, essentially making lawbreaking a profitable strategy, then based on what are these laws legal, sustainable and fair?
This raises fundamental questions not only about the integrity of the referendum process, however also why spending limits are not only unenforceable but simply show items in the midst of a circus?  
However, let’s avoid dwelling on this, as obviously it seems that no one really is bothered much about these and let’s move on to our next stage.


 
HOW MUCH DID THIS TABLOID DIVORCE COST?

OPPORTUNITY COSTS & MEDIA COVERAGE COSTS: BREXIT CAMPAIGN & IMPLEMENTATION (2016-2020)
This is the point where the costs become truly staggering so I ask everyone who one day gets here to read these to learn from these figures and implement in your everyday day life this comparing measures too. In politics even the “free” has its own price, for which all tax payers paid for already. So it is not free, is it? One must just really check how much that “free” really is.
PART 1: CIVIL SERVICE OPPORTUNITY COSTS
 
1.A. STAFF EXPANSION COSTS
Civil Service Growth (Source: Institute for Government, UK in a Changing Europe):
In June 2016 there were an estimate 384,000 full-time equivalent FTE civil servants, whilst in December 2021 this number raised by 24% (91,000) to 475,000 FTE civil servants. Of which 25,000-27,500 civil servants were working directly on Brexit by 2019-2020.
Annual Cost Calculation:
  • Estimated cost per civil servant: £45,000 (including salary, accommodation, pensions, NI contributions)
  • With 91,000 additional staff × £45,000 = £4.095 billion yearly, and over 5 years (2016-2021): ~£20.5 billion in additional civil service costs. However as I want to be generous, let’s spread out the 91,000 across the 5 years with equal yearly incremental rate, even then, the total figure is around £12.3 billion over the period of 5 years. Which is more likely in line with the civil service website estimates, which says Brexit might have cost £3 billion per year in staff costs alone - potentially even more than the 60,000 employed by "Brussels" for all centralized EU functions. However what they seem to forget to mention that this additional estimated yearly £3 billion is the actual costs of the newly appointed civil servants only during the 5 year, and they seem to forget to mention all the existing staff’s costs involved in Brexit, as if they would have nothing to do with it. So let’s face the reality, no one has a clue how much yearly these costs actually were, and if they still have realistic figures I am certain it would be way above the estimated £3 billion (just by that simple known fact that majority of the civil servant jobs are outsourced to agencies, which is well practiced procedure across the market. They charge way more than what the actual cost would be, however they save the headache of keeping and if need be, firing the staff from their civil servant jobs for all government bodies). This rabbit hole is so deep, once you go down, you will find it extremely hard to unsee or unhear whatever you meet moving forward.
So we could just stick to the £15 billion total narrative for the 5 year period in total costs, simply to keep the maths straight.
1. B. CONSULTANCY SPENDING BONANZA
This is particularly shocking, the government dramatically increased reliance on external consultants.
Overall Consultancy Spending Growth (Source: Tussell data):
  • 2016: £700 million in consultancy contracts
  • 2021: £2.5 billion in consultancy contracts
  • Growth: 257% increase over 5 years
Brexit-Specific Consultancy Costs (2017-2020):
  • Total Brexit consultancy fees: £450-600 million (conservative estimate)
Major Contracts (Sources: Multiple consultancy news reports):

McKinsey & Company:
  • £1.9 million (April-October 2017) - DExEU implementation of 800 Brexit plans
  • £680,000 (2018) - HMRC customs proposals (rejected by EU)
  • Part of £43 million to MBB firms (McKinsey, BCG, Bain) collectively
Deloitte:
  • £147 million (2019-2020) - up from £40 million (2017-2018) [268% increase]
  • Up to £100 million contract from HMRC for post-Brexit customs
  • £486,473 for EU exit coordination
Boston Consulting Group (BCG):
  • £2 million (Summer 2018) - cross-government delivery coordination
  • £750,000 (2018) - additional EU exit coordination (3 payments)
  • £10 million (April-August 2019) - 40 consultants for 4 months
Bain & Company:
  • £750,000 (2018) - similar to BCG agreement
PwC:
  • £106 million (2019-2020) in government fees
EY, KPMG, Accenture, PA Consulting:
  • £10 million each in various Brexit contracts
  • Total Big Four (Deloitte, PwC, EY, KPMG): £300+ million (2017-2020)
Cabinet Office Contracts (2020-2022):
  • £180 million over 2 years (with option to extend to £360 million)
  • Awarded to McKinsey, Bain, KPMG, Accenture, Deloitte, PwC
  • Note: Previous 2 years had cost £88 million - this quadrupled the spending
Single Contract Examples:
  • £75 million in Brexit contracts to 9 firms (before April 2019)
  • Individual consultant rates: £7,000-£14,000 per day
https://www.ucl.ac.uk/news/2021/sep/opinion-britains-public-sector-paying-price-governments-consultancy-habit

1. C. MANAGEMENT TIME & PRODUCTIVITY COSTS
Executive Time Diverted to Brexit (Source: CEPR, NBER Working Papers, Bank of England DMP Survey):
Between November 2018 and January 2019:
  • 10% of CFOs spending 6+ hours per week on Brexit preparations
  • 6% of CEOs spending 6+ hours per week on Brexit preparations
  • Over 70% of both CFOs and CEOs spending some time on Brexit prep
  • Average: Nearly 10% spending 6+ hours/week, 25% spending 1-5 hours/week
Productivity Impact:
  • Over 500 Brexit-related work streams in government
  • Similar number of legislative changes required
  • Deloitte 2016 leaked memo: Warned of need for 30,000 additional civil servants
  • Civil servants working overnight shifts preparing Brexit briefings
  • Papers arriving at 18:00, departments had 3 hours to compile briefings
  • Briefings to senior civil servants by 21:30, who worked overnight

PART 2: BUSINESS OPPORTUNITY COSTS
 
2. A. SMALL BUSINESS PREPARATION COSTS
Direct Costs (Source: FSB, Enterprise Nation):
  • Only 21% of SMEs expecting negative impact made preparations
  • 63% said they couldn't plan at all (lack of information, shifting deadlines)
  • Those who prepared: Average cost £3,000 per firm
    • Extra stock
    • Legal advice
    • New paperwork systems
    • Compliance preparations
  • One-third saw profitability decline due to Brexit preparations alone

2. B. BUSINESS INVESTMENT DEPRESSION
Investment Impact (Source: CEPR, Economics Observatory, Bloomberg Economics):
  • Brexit reduced investment by approximately 11% over 3 years post-referendum
  • Business investment was essentially flat 2016-2019 (normally grows 6% annually)
  • By 2020/21: Business investment was 23% lower than it would have been without Brexit
  • By 2022: Business investment 10% below counterfactual
Annual Lost Investment:
  • If business investment should have grown at historical 0.5% per quarter
  • Lost growth represents tens of billions in foregone investment

2. C. ONGOING ECONOMIC DRAG
Bloomberg Economics Analysis (January 2023):
  • Brexit costs UK economy: £100 billion per year in lost output
  • Effects span hiring, business investment, trade
Bank of England Survey Data:
  • Since 2016: At least 30% of firms consistently identified Brexit as top 3 concerns
  • Peaked at 55% in 2020
  • This ongoing uncertainty continues to suppress investment and growth
Foreign Direct Investment:
  • FDI inflows dropped 37% between 2016-2022
  • Foreign investors relocated to EU to preserve single market access
  • UK lost £1 trillion in potential FDI (half of UK's FDI stock comes from EU)

2. D. PRODUCTIVITY LOSSES
Measured Productivity Decline (Source: CEPR, NBER):
  • Productivity decreased 2-5% over 3 years following referendum
  • Caused by:
    • Management time diverted to Brexit planning
    • Reduced R&D spending due to uncertainty
    • Reduced software and training investment
    • Innovation suppression
Export Collapse:
  • Services exports: 9.2% annual drop (2016-2019) = $146.8 billion USD loss
  • 2021: Number of UK businesses exporting goods to EU fell 33%
  • From 27,000+ in 2020 to ~18,000 in 2021
  • UK-EU exports dropped 22.9% in first 15 months post-Brexit
  • 42% of product varieties disappeared from exports
  • Seafood sector: 83% collapse in first month due to new checks

PART 3: MEDIA COVERAGE COSTS

This is harder to quantify precisely, but here's what we know:
BBC Funding Context:
  • BBC annual revenue: ~£5 billion (75% from TV license fees)
  • License fee: £159/year (2016-2020 period)
  • The BBC commands 32% of UK TV audience share
Brexit Coverage Resources: Unfortunately, broadcasters don't separately itemize "Brexit coverage costs" because:
  1. It's part of their statutory news obligations
  2. Editorial staff are on salaries regardless of what they cover
  3. It displaced other coverage rather than adding new costs
However, we can estimate the followings based on Dedicated Coverage:
  • From 2016 onwards, Brexit dominated news cycles
  • BBC created dedicated programs: "Brexitcast," "Reality Check" unit
  • Continuous coverage 2016-2020 across TV, radio, online
  • European elections 2019 entirely Brexit-focused
  • Multiple live referendum results shows, leadership contests, parliamentary votes
Conservative Estimate, if we assume Brexit represented:
  • 10-20% of BBC News output over 4 years (2016-2020)
  • BBC News budget is roughly 15-20% of total BBC budget
  • 20% of £5 billion = £1 billion × 4 years = £4 billion total
  • Brexit portion (10-20%): £400-800 million over 4 years
Commercial Broadcasters:
  • ITV, Sky News, Channel 4 also provided extensive coverage
  • Similar resource allocation
  • Combined commercial broadcaster spending: Estimated £200-400 million (2016-2020)
Print Media:
  • Newspapers devoted front pages, special supplements
  • Investigative journalism, Brussels correspondents
  • Estimated additional costs: £100-200 million across sector
TOTAL ESTIMATED MEDIA COSTS: £700 million - £1.4 billion (2016-2020)
PART 4: OTHER OPPORTUNITY COSTS

Parliament & Legislative Costs:
  • Over 500 statutory instruments needed to be drafted
  • Thousands of hours of parliamentary debate
  • Multiple failed votes, leadership contests
  • Three prime ministers' resignations partly due to Brexit
Departmental Disruption:
  • DExEU (Department for Exiting EU): Entire new department created, then disbanded
  • Department for International Trade: 3,200 new staff
  • Home Office: Added 8,400 officials (immigration system)
  • DEFRA: Added ~5,000 staff
  • BEIS: Added ~5,000 staff

GRAND TOTAL: OPPORTUNITY & MEDIA COSTS

Conservative Estimate (2016-2020):

Category

Amount

Additional Civil Service Staff

£15 billion

Consultancy Fees

£450-600 million

Business Investment Lost

£50-100+ billion

Media Coverage

£700 million - £1.4 billion

Management Time (businesses)

Tens of billions (unquantified)

SUBTOTAL

£70-120+ billion

Annual Ongoing Cost (post-2020) is £100 billion/year in lost output (Bloomberg Economics).
 
Other KEY SOURCES information can be found at:
  1. UK in a Changing Europe - Civil service Brexit analysis
  2. CEPR/NBER - Business investment and productivity studies
  3. Bank of England Decision Maker Panel - Firm uncertainty surveys
  4. Enterprise Nation/FSB - SME preparation costs
  5. Consultancy.uk - Multiple reports on specific contracts 1, 2 and 3
  6. Byline Times, UCL - Consultancy investigations

The Brutal Reality:
The direct referendum costs were ~£170-180 million, however the opportunity costs of Brexit preparation and implementation (2016-2020) were conservatively over £70 billion - that's over 400 times more expensive than the referendum itself. And that's before we even consider (or count) the ongoing annual costs of £100 billion per year in lost economic output based on Bloomberg. Oh what’s this money many may ask? For those who don't have to grind and support the survival of free riders (like many politicians are) is nothing of course, for those whoever seeing and experiencing the buying power between now and pre–Brexit I think they do know a thing or two, and let's not even mention the deficits in the government budget surging up every single year.  



The Cherry on the Cake: DID THE UK ACTUALLY "CUT TIES" WITH THE EU?
 
An Evidence-Based Analysis
 
The UK has NOT definitively cut ties with the EU as promised in the referendum campaign. And now let’s see the evidence systematically. And before anyone coming and turning around and telling me or anyone else that this is non-sense, first read the following, then dig yourself into the data as well and when you have found evidence that it is reality, be kind and make others to get it too.
SECTION 1: ONGOING LEGAL OBLIGATIONS
 
A. THE TRADE AND COOPERATION AGREEMENT (TCA)
Status: Legally binding international treaty
  • Signed: 30 December 2020
  • In force since: 1 May 2021
  • Scope: 1,240+ pages governing UK-EU relations
What the TCA Binds the UK To:

Area

Obligation

Source

Partnership Council

Regular meetings to oversee implementation

TCA, House of Commons Library

19 Specialized Committees

Most met at least once 2023-2024

UK Govt Implementation Report 2024

Dispute Settlement

Binding arbitration panels with cross-retaliation powers

House of Commons Library CBP-9139

Level Playing Field

Subsidy controls, labor standards, environmental regulations

TCA Part 2

Fisheries Management

Joint management of fish stocks, ongoing negotiations

EU Council

Data Adequacy

UK must maintain GDPR-equivalent protections or lose data flows

European Parliament 2025

Law Enforcement Cooperation

Shared databases, judicial cooperation (with suspension clauses)

TCA Part 3

Energy Cooperation

Interconnection, security of supply working groups

UK Govt Report 2024


CRITICAL POINT: The TCA is a 5-year review cycle with first review due 2026 (Source: House of Commons Library CBP-10040)



B. NORTHERN IRELAND: STILL SUBJECT TO EU LAW
 
This is the smoking gun that proves Brexit was incomplete.
Windsor Framework (Updated Northern Ireland Protocol)

EU Law Application

Details

Source

308 EU acts still apply to Northern Ireland

Down from 338 in 2019 but still substantial

Queen's University Belfast, Dynamic Alignment Review 2024

EU Single Market for Goods

NI remains aligned with EU rules

House of Commons Library CBP-9548

EU Customs Code

Applied to all goods entering/exiting NI

European Commission

Dynamic Alignment

EU laws apply "as amended or replaced" - NI automatically follows new EU regulations

Windsor Framework Article 13(3)

European Court of Justice

Still has jurisdiction over disputes relating to NI Protocol

Withdrawal Agreement

Irish Sea Border

De facto customs border between GB and NI

Wikipedia - Windsor Framework

 
What This Means:
  • Northern Ireland is effectively still in the EU Single Market for goods
  • Part of the UK is still subject to EU law that the UK Parliament cannot change
  • ECJ still has authority over part of UK territory
Sources:
  • House of Commons Library Research Briefing CBP-9548 (updated recently)
  • Windsor Framework official EU documentation
  • Northern Ireland Assembly briefings


C. THE "DIVORCE BILL" - ONGOING PAYMENTS TO EU
 
Total Financial Settlement: £30.2 billion (as of March 2024)

Metric

Amount

Source

Already paid (by Dec 2023)

£23.8 billion

Wikipedia - Brexit Divorce Bill

Further paid (2024)

£2.4 billion

UK in a Changing Europe, Sept 2024

Total paid (by end 2024)

~£26.2 billion

GOV.UK EU Finances Statement 2024

Outstanding as of Jan 2025

£5.7 billion (€6.8bn)

GOV.UK EU Finances Statement 2024

Payment deadline

Until 2065

House of Commons Library CBP-8822

Average annual payment post-2024

~£95 million/year

Facts4EU / ONS data

 
Breakdown of What UK Is Still Paying:
  • RAL payments (Reste Ă  Liquider - outstanding EU budget commitments): £15.3 billion already paid, £5.2 billion more expected
  • EU pension liabilities for UK nationals who worked for EU
  • Share of EU agency commitments made during membership
CRITICAL: The UK will be making payments to the EU for the next 41 years (until2065)
Sources:
  • Wikipedia: Brexit Divorce Bill (updated March 2025)
  • House of Commons Library CBP-8822 (updated recently)
  • GOV.UK European Union Finances Statement 2024
  • UK in a Changing Europe analysis

 
SECTION 2: WHAT THE REFERENDUM PROMISED VS. REALITY

Leave Campaign Promises (2016):

Promise

Reality (2025)

Status

"Take back control"

19 TCA committees + ongoing EU obligations

BROKEN

"Take back control of our laws"

308 EU laws still apply in NI; ECJ still has jurisdiction

BROKEN

"Take back control of our borders"

NI has different rules; Irish Sea border created

BROKEN

"Take back control of our money"

Paying EU £95m/year until 2065

BROKEN

"No payments to EU"

Already paid £26.2bn, £5.7bn outstanding

BROKEN

"Complete independence"

Bound by 1,240-page TCA with dispute mechanisms

BROKEN

"Get Brexit done"

Ongoing negotiations, 5-year reviews, constant committee meetings

BROKEN




SECTION 3: THE 2024 "RESET" - GETTING CLOSER TO EU

Major Development: Under PM Keir Starmer (elected July 2024), UK is actively seeking "closer EU ties"

UK-EU Summit (19 May 2025):

Agreement

Implication

Source

"Strategic Partnership" Common Understanding

Commitment to "reset" relationship

UK Govt TCA Implementation Report 2024

Regular UK-EU Summits

Institutionalized ongoing relationship

European Parliament Report 2025

RED LINES MAINTAINED

No single market, no customs union, no freedom of movement

UK Govt/European Parliament

Three cooperation pillars

1) Foreign policy, defence, security 2) Safety of citizens 3) Growth and trade

Consilium Europa

 
Quote from UK Government Report 2024:
"On 4 July 2024, the British people elected a new government on a manifesto which included a commitment to reset the UK's relationship with the EU", which contradicts the entire premise of "getting Brexit done".
Source: GOV.UK Trade and Cooperation Agreement Implementation Report 2023-2024



SECTION 4: AREAS WHERE UK IS STILL TIED TO EU

Regulatory Alignment (Forced Convergence):

Sector

Status

Source

Medicines (NI)

Dual regulation - MHRA approves but must align with EU for NI access

Windsor Framework

Data Protection

Must maintain GDPR-equivalent or lose EU data adequacy

European Parliament

Financial Services

No equivalence granted; UK must shadow EU rules for access

Winston & Strawn analysis

Chemical Regulation

NI subject to EU REACH regulations

Queen's University Belfast

Agricultural Products

NI follows EU SPS (sanitary/phytosanitary) standards

European Commission

State Aid

UK bound by TCA subsidy control provisions

TCA Part 2


The Reality:
UK claims regulatory divergence as a "Brexit benefit" but in practice faces passive regulatory convergence - must stay aligned or lose market access
Source: Bruegel Policy Brief 30/2024 on UK-EU Trade Policy Framework



SECTION 5: INSTITUTIONAL TIES

Permanent UK-EU Governance Structures:
  1. Partnership Council - Regular meetings (met 16 May 2024)
  2. 19 Specialized Committees including:
    • Trade Specialised Committee
    • Energy Specialised Committee
    • Fisheries Specialised Committee
    • Law Enforcement Specialised Committee
    • Social Security Coordination Specialised Committee
  3. Joint Consultative Working Group (NI-specific) with 5 sub-groups
  4. Withdrawal Agreement Joint Committee
  5. Dispute Settlement Panels (independent arbitration)
These are PERMANENT institutional relationships that bind the UK to ongoing EU engagement
Source: UK Government TCA Implementation Report 2023-2024; European Commission



SECTION 6: TRADE DEPENDENCY

The UK economy remains structurally dependent on EU trade despite Brexit

Metric

Figure

Source

UK exports to EU

42% of total

Bruegel 2024

UK imports from EU

52% of total

Bruegel 2024

UK trade performance vs other G7

Only G7 country not recovered from pandemic

NIESR, Bruegel

Goods exports since 2019

Down 13.2%

Bruegel citing Fry 2024

Services trade since 2019

Up 14%

Bruegel




CONCLUSION: THE VERDICTS 

Is the UK still tied to the EU?

ANSWER: YES
 
Evidence Summary:
Legal ties:
  • 1,240-page Trade and Cooperation Agreement binding until at least 2026
  • 308 EU laws still apply to Northern Ireland
  • ECJ still has jurisdiction over part of UK
  • Dispute settlement mechanisms with cross-retaliation powers
Financial ties:
  • Ongoing payments until 2065 (£5.7bn outstanding)
  • Already paid £26.2bn+
Institutional ties:
  • 19+ permanent committees
  • Regular summit commitments
  • Binding arbitration panels
Territorial ties:
  • Irish Sea border (part of UK subject to different rules than rest of UK)
  • NI effectively still in EU Single Market
Regulatory ties:
  • Forced convergence on data, medicines, chemicals, agriculture
  • Level playing field obligations on subsidies, labor, environment
 
Was Brexit "delivered" as promised?
ANSWER: NO
The referendum promised:
  • Complete independence
  • No EU payments
  • Full control of laws
  • Full control of borders
  • Sovereignty restored  
What actually happened:
  • Created complex treaty relationship requiring constant management
  • Ongoing payments for decades
  • Part of UK still under EU law
  • Created internal UK border
  • Limited sovereignty (bound by international treaty)

My Assessment: "Brexit was a show and actually it is still an ongoing process that no one sees the end of it"
VERDICT: CORRECT
Supporting Evidence:
  1. 2024 "Reset" - Government actively seeking closer EU ties
  2. 2026 TCA Review - Major renegotiation coming
  3. Ongoing committee work - Constant engagement on implementation
  4. Regulatory reviews - Continuous alignment pressures
  5. NI consent vote (December 2024) - Can trigger 2-year renegotiation
Brexit is not "done" - it's an ongoing, evolving process of managed separation with strong continued ties. AKA, welcome to the circus

Some relevant direct resources: 

  • https://commonslibrary.parliament.uk/research-briefings/cbp-9548/
  • https://commonslibrary.parliament.uk/research-briefings/cbp-8822/

  • UK in a Changing Europe:
  • Bruegel Policy Brief 30/2024:
  • UK Government TCA Reports:
  • All sources are from 2023-2025, representing current status regarding the "divorce" of EU and UK. The big question one really should be asking based on all the above evidence what the circus was made for and why the citizens have paid such heavy price from their taxes paid into the government budget, from which all these activities were funded from? And the story doesn't end here, will ever anyone look into the pension contributions spend for private or government pension providers and how the EU is tied to them and the IMF, including the loans that are taken out to "fund" the budget deficit? I guess not, as no one really knows where to start I guess. Let me give you a hint. Check the contributions vs. citizens who don't work in private sectors, then check who pays, how much and why that much? You'll be amazed by the findings. Then move on to see who runs the cartel, you will love your findings (it will be likely everyone and still no one :)). 

    Thanks for making it this far and let's see when, if ever the Brexit voters will win with one point at least against paranoia. I am genuinely curious. 

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