27. The EU (+ & - to UK)

Question 1

What are the Benefits to the UK being in the EU?

Answer 1

1. Competition in the labour market has:
   Driven productivity
   Kept a lid on wage costs
   Both of which have reduced cost push inflationary pressure and increased competitiveness.
2. Migration has filled hundreds of thousands of job vacancies driving economic growth
3. Fiscal dividend- more workers paying more taxes; companies making higher profits paying more taxes etc
4. EU membership creates big opportunities for our exporting businesses and allows UK workers and citizens much more choice of where to work and live.
5. There are also many political advantages to being in a stable and united group

Question 2

What are the disadvantages to the UK being in the EU?

Answer 2

1. Extra welfare burden for government e.g. JSA/Housing/Child
   
   • Extra pressure on services i.e.NHS/schools
2. Much of the money earned is ‘sent home’ (Remittances)resulting in significant ‘leakages’ from the circular flow
3. Opposition to membership point to the cost (UK contributes a lot of money to subsidise poorer members) and the restrictions imposed by membership (e.g. increased regulations creating more work and more costs for businesses).
4. Increased regulations are really the only way to ensure the Single Market works properly