In 2025, the European Union (EU) plans to roll out a new electronic Entry Exit System (EES) for travelers hailing from non-EU countries. This system, initially scheduled for a November 2024 release, was postponed to ensure seamless implementation. In tandem, the United Kingdom (UK) is set to introduce its Electronic Travel Authorisation (ETA) at a cost of £16. These moves signify a pivotal shift in travel and trade dynamics post-Brexit.
Since the UK's departure from the EU, it has embarked on a journey of forging its own trade path. The country has struck independent trade deals with nations such as Australia, New Zealand, the United States, and India. These new agreements underscore the UK's commitment to establishing a global trading network that caters to its unique economic strengths and strategic interests.
Despite these advances, recent studies suggest that UK goods exports are 30% lower than they would have been if the UK had remained within the EU's single market and customs union. This downturn is attributed to "non-tariff barriers," which entail intricate and time-consuming paperwork for businesses engaged in EU trade. However, UK services exports such as advertising and management consulting have performed unexpectedly well since 2021, highlighting the resilience and adaptability of certain sectors.
One of the significant changes post-Brexit is the UK's newfound ability to levy Value Added Tax (VAT) on private school fees and implement a zero VAT rate on tampons and other sanitary products. These changes were not permissible under EU regulations, which prohibit member states from charging VAT on education. This newfound fiscal autonomy aligns with the UK's broader strategy of tailoring policies to suit domestic priorities.
Financially, the UK continues to meet its obligations under the Brexit Withdrawal Agreement, which includes payments to the EU as part of the financial settlement. Simultaneously, the UK has negotiated a free trade deal with the EU, effectively avoiding tariffs on goods imports and exports—a crucial step in maintaining economic stability in the region.
The introduction of a post-Brexit immigration system in January 2021 further exemplifies the UK's intent to reclaim control over its borders. This system reflects an effort to balance economic needs with social considerations, attracting skilled workers while addressing domestic labor market requirements.
In response to the cessation of EU structural funding grants, the UK has introduced the "UK Shared Prosperity" fund. This initiative aims to channel resources into local communities, fostering economic development and addressing regional disparities.