- Average workers in the UK are set to lose over £470 per year by 2030, as per a report by the Resolution Foundation and the London School of Economics.
- By the end of this decade, labour productivity in the country is anticipated to decline by 1.3%.
A recent report has stated that Britain's average workers are all set to lose over £470 per year by 2030. The report jointly published by the Resolution Foundation, an independent think-tank, and the London School of Economics highlighted that the UK will become poorer due to Brexit in the future and its spiralling effect is being felt by the rising cost of living.
The report suggested that the lack of an open economic setup has left Britain vulnerable, reducing its overall productivity. With the rising inflation levels, households are struggling to pay their food and fuel bills while the business investment is also decreasing.
The electrical equipment manufacturing sector would be one of the worst-hit segments as it was more dependent on cross-border supply chains. Meanwhile, food manufacturing is anticipated to grow post-Brexit as food products are mainly supplied in the UK.
The EU–UK Trade and Cooperation Agreement (TCA), established in January last year, coincided with the pandemic, thus making it more challenging to evaluate its early impact. According to Resolution Foundation, exports to the EU haven’t fallen as much as expected post-Brexit. However, imports from the EU have drastically gone down. Last year, the UK lost access to its three major non-EU import markets, including Japan, Canada, and the US.
It would take years to measure the actual impact of TCA, but the report highlighted that the move towards creating a more closed economy would cost the UK by making it less competitive, reducing its overall productivity, as well as real wages. By the end of the decade, labour productivity in the country is anticipated to decline by 1.3%.
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Amid the changing economic environment in the country, investors can keep an eye on these 3 major UK export companies.
BP plc (LON: BP.)
The shares of the UK-based oil and gas supermajor, BP plc, were up by 1.36%, at 12:26 PM (GMT+1) on 23 June 2022, and were trading at GBX 388.50. The FTSE 100 company has provided its shareholders with a return of 20.47% over the past year as of 23 June 2022, while its YTD return stands at 17.62%. Its current market cap stands at £73,781.41 million.
British American Tobacco plc (LON: BATS)
The shares of the UK-based cigarette producer, British American Tobacco plc, were down by 0.72%, at 12:28 PM (GMT+1) on 23 June 2022, and were trading at GBX 3,454.00. The FTSE 100 company has provided its shareholders with a return of 23.46% over the past one year as of 23 June 2022, while its YTD return stands at 26.22%. British American Tobacco’s current market cap stands at £78,644.43 million.
Rio Tinto plc (LON: RIO)
The shares of the Anglo-Australian mining giant, Rio Tinto plc, were up by 0.02% at 12:29 PM (GMT+1) on 23 June 2022, and were trading at GBX 5,020.00. The FTSE 100 company has provided its shareholders with a return of 2.72% on YTD basis as of 23 June 2022. However, its performance has deteriorated over the past year with its one-year return standing at -14.56%. Rio Tinto’s current market cap stands at £62,701.87 million.