A Brexit with no deal in 2019 would wipe £40bn off the UK economy, the OECD forecasts in its report released today.
They predict just 1% UK growth in 2018, and say that the UK must secure “the closest possible economic relationship” with the EU in future to avoid economic damage.
Commenting, Chris Leslie MP, leading supporter of Open Britain and former Shadow Chancellor, said:
“The Government’s plans for an extreme Brexit are already inflicting pain on the economy, and with every failed round of negotiations the risk of crashing out with no deal is growing.
“The OECD forecast that leaving the EU without a deal would wipe £40bn off the economy in just the first year and a half – a price that would be paid in lower wages, higher prices in the shops and weaker public services.
“Nobody voted to become poorer or to see our schools and hospitals deprived of the resources they need, but it’s clear the claims of Ministers and Leave campaigners that Brexit could be cost-free were simply untrue.
“The Prime Minister needs to act to protect our economy. That means preserving our close trade links with Europe by staying in the Single Market and the Customs Union.”