‘The Brussels Dividend’: Commons Committee urges strategic reset with Europe to unlock growth and security

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• Business and Trade Committee

Drawing on months of evidence, expert testimony, and visits across Europe — from the Northern Ireland border to the World Trade Organization — the Committee has uncovered strong support from business and industry for proposals to unlock a ‘Brussels dividend’ from the reset.

Key findings

Graphs in this final report How to strengthen UK-EU relations: Policy Priorities for the Summit (attached) illustrate support from Committee stakeholders for each of the proposed measures, including:

• 95% support for measures to reduce border bureaucracy
• More than 90% support closer defence and infrastructure coordination
• Up to 96% back deeper collaboration in digital regulation, financial services, and science
• Over 80% strong agreement for a 10-year UK-EU regulatory roadmap for key sectors  

The Case for Reset 

• 41% of UK goods exports still go to the EU — more than to the US, India and Indo-Pacific combined.
• But since 2019, UK goods export growth has stagnated at just 0.3% a year, compared to an OECD average of 4.2%.
• Best for Britain said “deep alignment in goods could grow UK GDP by 1-1.5%, and the UK and EU can expect a boost in exports of around $20bn while remaining within red lines of no return to the single market or customs union

Chair comment

Rt Hon Liam Byrne MP, Chair of the Business and Trade Committee, said: “It’s time to face facts. If Britain wants to beat the forecasts and escape stagnation, we don’t need to pray to the bond markets — we need to unlock the Brussels dividend through a strategic reset with our biggest trading partner.

“Today’s report from the BTC is a blunt warning that without a serious reset in our relationship with Europe, Britain will miss its best chance to accelerate growth and bolster security in a increasingly dangerous world. At stake is not only a new opportunity to rebuild our defences - but a huge prize to kickstart UK goods exports which have flatlined since Brexit. This summit is Britain’s opportunity to re-anchor our economic and security strategy in shared strength, not splendid isolation. Government must seize it.”

Beyond trade, the Committee consulted on deepening defence and security ties, including pressing for a formal UK-EU Security and Defence Pact that would open the door to the EU’s proposed €150 billion SAFE defence fund. It included proposals for closer cooperation on critical infrastructure including offshore wind, subsea cables, and energy interconnectors, and a reset to the electricity market to end post-Brexit inefficiencies that the National Grid estimates are costing British consumers up to €350 million a year. 

Recommendations

The Committee is clear on the red lines at this most consequential UK-EU meeting since the Trade and Cooperation Agreement was signed and has proposed measures in the space that remains for ambitious negotiation, including:

• Reducing border costs through trusted trader schemes and simplified customs declarations
• Striking a veterinary agreement to cut friction for food exporters
• Deepening regulatory cooperation in digital, finance, and research
• Forging a UK-EU Defence and Security Pact, giving Britain access to the proposed €150 billion EU SAFE defence fund
• Resetting the electricity market to end post-Brexit inefficiencies costing UK consumers an estimated €350 million a year

In evidence the travel agency ABTA said it has "been a steadfast advocate for a UK-EU Youth Mobility Scheme” but that businesses require the confidence and flexibility to plan operations beyond 12-month periods, and noted that other UK youth mobility schemes are up to three years.

The Society of Motor Manufacturers and Traders (SMMT) emphasised the value of regulatory cooperation, identifying it as one of the top three trade policy priorities for the sector, alongside avoiding tariffs and smoothing customs operations.

Three Pillars for a Reset

This final BTC report builds on last month’s “Green Paper” to propose a strategic reset under three key pillars:

1. Defending Prosperity

Strengthen UK-EU cooperation in defence, critical infrastructure, and intelligence-sharing — including support for Ukraine and joint resilience against hostile threats.

2. Energy Cooperation

Cut Net Zero costs and strengthen energy security by aligning carbon border policies, integrating electricity markets, and boosting investment in clean energy and offshore infrastructure.

3. Smoothing Trade

Reduce post-Brexit friction through targeted SPS agreements, customs reforms, and sector-specific trade facilitation to unlock business growth and investment certainty.

Further information

• About Parliament: Select committees
• Visiting Parliament: Watch committees

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