Regulation, innovation and productivity
Brexit is only likely to have a limited impact on Britain’s productivity. The major potential for improvement comes from increased business investment which shows little connection with political developments. Estimates that axing European Union regulations would save Britain a lot of money exaggerate the true picture as the United Kingdom would still choose to implement many of them. It would also need to implement the union’s regulations to continue to export easily to the single market. Reduced regulation might give a small boost to productivity but wouldn’t be a game-changer.