The Government’s own impact analysis, published today, shows that the UK will need to borrow an additional £55bn by 2033-34 if we leave the Single Market and instead negotiate a free trade agreement with the EU.
Responding, Chris Leslie MP, leading supporter of Open Britain, said:
“This analysis makes crystal clear that the Prime Minister is pursuing a policy that she knows will severely damage our economy.
“The Government’s own view is that even if we secure a free trade agreement with the EU, leaving the Single Market will hurt our trade so much that we will need to find an additional £55bn by 2033.
“This whopping hit to the public finances, on top of an exit bill of at least £40bn, means less money for the NHS, for schools, for the defence budget and all our other national priorities.
“The Government can no longer conceal the grim fact that they are leading us to a new era of austerity. As new facts like these emerge about the monumental costs of Brexit, everyone is right to keep an open mind about whether it is all worth it.”
Notes to editors
A graph on page 25 of the document (see attachment) shows the annual change in borrowing relative to the status quo by 2033-34. The Government calculates that the £28bn reduction in borrowing that would result from, among other things, ending EU budget contributions, would be more than offset by the £83bn additional borrowing that would be required. Additional net borrowing under this scenario would be £55bn.