UK Government adopts all four Good Growth Foundation policy proposals for UK-EU reset
When we published The Third Rail of British Politics, we began with a warning: unless Britain confronts the politics of of Brexit with honesty, clarity and respect for public opinion, we would remain stuck - unable to rebuild our relationship with Europe or restore public trust in politics.
Today, all four of the Good Growth Foundation’s headline policy proposals have been adopted by the UK Government.
The aim of The Third Rail was simple: unlock progress on UK–EU cooperation by designing reforms that work economically and politically. That meant understanding what the public wants and crafting policies to meet their tests.
Each of our proposals did exactly that. And today, they are all moving forward.
1. A UK–EU Youth Mobility Scheme
We argued that a youth mobility scheme could offer economic gain and public acceptability. With caps, a surcharge to fund cost-of-living relief, no access to benefits and a maximum stay of three years, our proposal would generate up to £1bn annually in fiscal benefits.
2. Carbon and Electricity Market Alignment
We recommended reconnecting the UK and EU carbon markets and joining the EU electricity market to bring down bills and improve energy security. The latest announcements commit to doing just that, offering savings of up to £370 million annually and revenues of £700m–£1.6bn.
3. Independent Dispute Resolution
We identified European Court of Justice (ECJ) jurisdiction as one of the public’s top red lines, and proposed an alternative model rooted in independent arbitration.
The Government has now endorsed such models as the default for future UK–EU cooperation.
4. A UK–EU Defence Pact
Finally, we called for a formal defence pact with access to the EU’s SAFE fund—€150bn in joint defence investment. Today’s policy announcements move decisively in that direction, enabling joint procurement, enhanced security and better value for the taxpayer.
Too often, the debate has been stuck between rhetorical crackdowns that don’t solve real problems and pro-European proposals that alienate the electorate. The Third Rail offered a new way: reforms rooted in consent, clarity and contribution.
Now we can move forward with a reset that opens the door to deeper UK–EU ties - on terms the public can accept.
“There remain challenges with implementation, but the Good Growth Foundation gave four recommendations for a common sense deal with the EU: an independent arbitration for SPS and energy cooperation; linking carbon and energy markets to bring down bills; a new defence pact; and a controlled youth mobility scheme - and we are happy to see the government has progressed across all four of these pillars. We think this is right for good growth right across the UK.”
