Boris Johnson’s deal with the European Union will cost Britain 6.7 per cent of its GDP over the next 15 years, government estimates show.
The Prime Minister struck a new agreement with Jean -Claude Juncker today, but it was quickly dismissed by critics.
Labour leader Jeremy Corbyn said the Prime Minister had negotiated an “even worse deal than Theresa May’s, which was overwhelmingly rejected”.
£130 billion in lost GDP growth
And according to estimates, he might be right to be concerned.
Britain is set to sacrifice as much as £130 billion in lost GDP growth over the next 15 years if the Brexit deal goes ahead.
The forecasts published by the government last year show an agreement similar to Boris Johnson’s settlement, which envisions striking a limited free trade deal with the EU, would strip 6.7 per cent from the UK’s expected path of GDP growth between now and 2034.
That equates to making people on average £2,250 a year poorer by 2034.
MPs previously rejected Theresa May’s withdrawal agreement and political declaration, which the same analysis found would knock about 2.1 per cent off the UK’s total national income over 15 years, compared with remaining in the EU.
The estimates were made by the Department for Exiting the European Union in November last year when it examined the potential impact of various proposals on the growth of GDP, which is currently about £2.1 trillion.
Northern Ireland’s “already weak economy”
Angela McGowan today said any type of Brexit deal will touch on every aspect of Northern Ireland’s “already weak economy”.
The director of the Confederation of British Industry in Northern Ireland, said the ripple effect of a Brexit deal will hit business investment, productivity, competitiveness, and where and how Northern Ireland trades.
The CBI represents about 180,000 business across the UK and about 75 per cent of the top 100 businesses, and hundreds of small firms in Northern Ireland.
Speaking at the On the Brink of Brexit conference in Dublin on Thursday, Ms McGowan said that Northern Ireland needed a deal that protects the all-island economy, the Good Friday Agreement, and one that gives unfettered access to Great Britain’s market.
Step forward
“The deal is going to be a step forward and it has to be something that will recognise the unique circumstances of Northern Ireland will be in that,” she said.
“If we get a deal, we have only just begun, the discussions on services – 75% of Northern Ireland economy – will commence.”
She added: “In our view it will touch on every aspect of this already weak (Northern Ireland) economy.
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