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Many good answers in this thread (and some stupid ones) but there are a few critical issues that the current British government will not accept.
First, currency. GB does not want to give up control over the pound, and their previous agreement did not force them to adopt the Euro. There are several other EU countries that have not yet adopted the Euro, but all except Denmark are obligated to switch over once certain criteria are met. GB might be able to negotiate that privilege again, but the EU is in a stronger bargaining position now.
Second, immigration. For as much as their country is suffering from their own strict immigration policies, the conservative government is still making political hay out of xenophobia and bigotry. Reopening the borders would be a tacit admission that their rhetoric was bullshit.
Third, taxes. Joining the EU means contributing to the EU, and while their nation may save money overall due to improved trade relations, the conservative government has made the cost of admission another talking point.
Basically, the current government would have to renegotiate readmittance to the EU, and they would get a worse deal than they had before. Doing so would make it obvious that leaving was a mistake, and their government could only be consisered an objective failure. So they won't do it, even if it is the best option available.
So Britain is in a sunk cost fallacy situation? If so who exactly in power is preventing us to rejoin?
Well, ostensibly it's the voters. Vote for progressive candidates.
First of all, all the politicians that would look bad after propagating Brexit. Then those few select rich who gained a fortune from Britain's misery. And those people who fell for their lies, and simply can't admit that they had been had. This is the one side.
The other side is the EU. Brexit has cost the EU a fortune, and a lot of work. Re-admitting the UK would be put them in a bind to make sure - absolutely sure - that such a shit show will never, ever, happen again. Basically "Fool me once..." And they would have to convince all current EU members that this time, the UK really means to join and stay and take the whole EU stuff seriously, and not just like they did when the UK joined for the first time: To be in just to be able to easier weaken them.
The funny thing is that the UK now gets way more refugees than before, as France no longer sees the need to keep them back.
Not just that, all these trade deals we cut with other countries means visas for their citizens. Net immigration to the UK has tripled since Brexit from countries like India. I'm sure the racists and xenophobes are really happy with what they voted for.
Well at least all the people who enjoy Indian food will be happy.
Those other countries still accept the euro though right?
I think they do, but probably not guaranteed everywhere. Denmark might not, but I don't know for sure. I know Czechia does close to the borders, but I haven't been to the other countries myself to know.
It is up to the shops whether they want to accept euro or not (or any other currency), but the official currency is kroner. I know that some supermarkets (Netto) used to gladly take euro in exchange for a horrible exchange rate