Treasury warns ‘Hard Brexit’ could cut 10% off GDP & cost up to £66bn – The London Economic

Treasury warns ‘Hard Brexit’ could cut 10% off GDP & cost up to £66bn

This news must panic even the most ardent of “Brexiteers,” as a leaked Treasury document would destroy the UK economy. The fall that has been predicted would damage jobs across the country and send business to the wall.

The report was shared with The Times and suggests that GDP might fall to almost ten per cent if the UK leaves the European project and opts to follow World Trade Organisation rules.

The paper was published by the ex-Chancellor George Osborne back in April, but the Treasury still stands by its original figures.

The leaked government document says: “The Treasury estimates that UK GDP would be between 5.4 per cent and 9.5 per cent of GDP lower after 15 years if we left the EU with no successor arrangement, with a central estimate of 7.5 per cent.”

It adds: “The net impact on public sector receipts – assuming no contributions to the EU and current receipts from the EU are replicated in full – would be a loss of between £38 billion and £66 billion per year after 15 years, driven by the smaller size of the economy.”

Regardless, Minster for Brexit, David Davis, is pushing on with a “hard Brexit” even though the value of the pound is plunging out of sight. This has seen the FTSE hit record highs, but a lot of this increase is due to currency fluctuations against the sinking pound.

Davis seems confident the UK will prosper even with these startling figures, he said: “It is not necessary to be a member of the single market, to trade incredibly successfully in the single market.”

A Government spokesman said: “We want the best outcome for Britain. That means pursuing a bespoke arrangement which gives British companies the maximum freedom to trade with and operate in the single market, and enables us to decide for ourselves how we control immigration.”

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