The European Union is terrified that Britain will exit without any strings attached which would prevent us becoming a dynamic, entrepreneurial and outward looking, free market economy – a complete contrast to the over-regulated and protectionist bloc.
The value of deregulation alone for Britain is considerable. Better still it is entirely within the gift of our government, unilaterally and without reference to the EU, and can begin to be implemented the day after Brexit – provided we do not negotiate it away, which is of course exactly what the EU wish us to do.
So what are the red tape cutting ingredients of the Brexit cake? Well, they are manifest, as the benefits of regulatory easing most often lie in the elimination of the accumulation of small burdens that add up to big numbers across the economy. How big depends on how determined we are and what ingredients we include.
The Treasury’s report 2005 on the cost of EU law, the British Chambers of Commerce “Red Tape Tracker” of 2010 and the Open Europe Report of 2015 all came to approximately the same quantum of cost. They pointed to a ten percent reduction in regulation being worth 0.7 and 1.2 per cent of GDP, with the Economists for Free Trade Report of 2017 identifying a 2 per cent of GDP benefit from a twenty percent reduction.