The Government has not made any assessment of the economic impact of leaving the European Union with no deal, despite the Prime Minister’s assertion that “no deal for Britain is better than a bad deal for Britain”, it has emerged today.
David Davis was asked by the Exiting the European Union Select Committee whether “the Government has undertaken an economic assessment of the implications for the British economy and British business of there being no deal?” He replied: “Under my time, no.”
This is despite the fact that the Government has been warned repeatedly of the dangers of leaving the EU with no deal and trading under World Trade Organisation (WTO) rules instead. Today, European Council President Donald Tusk said other EU states regarded this as a “threat” from the UK Government, which they would not be intimidated by
Commenting, Pat McFadden MP, leading supporter of Open Britain, said:
“The Government’s total lack of preparedness for the policy option of leaving without a deal was exposed in the Select Committee this morning.
“Mr Davis confirmed there had been no economic assessment of what trading under WTO rules would mean before the Prime Minister set out the “no deal” option in her Lancaster House speech.
“He was forced to admit that such an outcome would be a breach of the Government’s aim to retain all the benefits we have in terms of market access.
“And he refused to commit the Government to giving Parliament a vote on such an outcome which would represent the biggest change in trade and economic policy for decades.
“The country deserves to know the economic impact of the options the Government is considering. This morning we learned that the Government itself doesn’t even know the impact.”
Notes to editors:
House of Commons Library research has found that, if the UK left the EU with no deal, our trading arrangements with the European Union would be the worst of any of the G20 large economies: https://www.theguardian.com/politics/2017/mar/12/no-deal-brexit-would-put-uk-in-worst-trading-position-of-rich-nations
A leaked document has shown that the Treasury itself considers that trading with the EU under WTO rules would be the worst option for Britain: http://www.independent.co.uk/news/uk/politics/brexit-treasury-fears-leaked-document-article-50-theresa-may-eu-referendum-exclusive-a7624706.html
Published Treasury research produced during the EU referendum campaign came to the same conclusion: https://www.gov.uk/government/publications/hm-treasury-analysis-the-long-term-economic-impact-of-eu-membership-and-the-alternatives
European Council President Donald Tusk has today warned of the dangers of leaving with no deal, saying EU countries would not be intimidated by what they consider to be a threat: http://www.bbc.co.uk/news/uk-politics-39277845