Labour is being destroyed by dithering: it should either do Brexit properly or rejoin the EU | Larry Elliott

"Brexit still shapes British politics. It has smashed the two-party duopoly and continues to divide the country. Keir Starmer's struggle to remain prime minister after last week's drubbing for Labour in elections in England, Scotland and Wales is proof of that. Voters took politicians at their word after the decision was made to leave the EU. The reason Take back control worked as a slogan was that it chimed with the public mood in large parts of Britain."

"For years it had been clear that the UK's economic model was only working for the better-off parts of the country. Globalisation might be bringing rich rewards to London and the south-east, but it isn't to towns in the north hollowed out by deindustrialisation and austerity. But taking back control also meant Britain could no longer use the EU as a reason for passivity. Politicians had become well versed in using Europe as an excuse for inactivity, but after Brexit this line of argument no longer washed."

"The UK had to solve its own problems. It was no longer bound to adopt EU regulations. It could set its own trade policy. It could, if it chose, follow the example of east Asian economies and systematically rebuild manufacturing using tariffs, subsidies, government procurement and capital controls. But if the freedoms were not used, then nothing would change. And if nothing changed, politicians at Westminster would feel the full force of the public's anger. There could be no hiding behind Brussels any more."

"Ironically, the one sector that has benefited from Brexit freedoms has been financial services, in which both the previous chancellor, Jeremy Hunt, and current one, Rachel Reeves, have adopted a lighter-touch regulatory regime. Governments have had a clear strategy for this already powerful bit of the economy, and that strategy has worked. The City is thriving. But that's the exception. Voters young, middle-aged and old think their government should be doing more for them after a"

Brexit continues to shape British politics a decade after the referendum, breaking the two-party duopoly and deepening national division. Labour’s difficulty in remaining prime minister after election losses across England, Scotland, and Wales reflects ongoing voter dissatisfaction. Voters acted on promises made when leaving the EU, and the slogan “take back control” matched public sentiment in many regions. Economic benefits have concentrated in London and the south-east, while towns in the north have faced hollowing from deindustrialisation and austerity. Brexit removed the ability to blame Brussels for inaction, requiring the UK to address its own economic and regulatory choices. Financial services have benefited from lighter regulation, while other sectors have not seen comparable change.

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