Leaving the EU with no deal and trading under World Trade Organisation (WTO) rules would be the future trading relationship “with the most negative long-term impact” for Britain, according to a leaked Treasury document reported by The Independent.
The document warns that reverting to WTO tariffs would cause “a major economic shock to the UK, with serious consequences for companies, consumers, jobs and prices” – including a 2.9 per cent rise in food prices.
Commenting, Wes Streeting MP, leading supporter of Open Britain, said:
“This report shows the Treasury’s own internal view is leaving the EU with no deal would be a disaster for the UK economy.
“Civil servants have shown that crashing out of the EU onto the WTO would cause a severe economic shock. Ministers should rule out this perilous path for our country.
“With no trade deal the UK would face eye-watering tariffs in certain sectors, services trade would be restricted, and we would lose access to vital global trade agreements.
“Having ruled out the best possible deal, which is staying in the Single Market, our reckless Prime Minister has chosen to make this worst-case scenario a real possibility.
“It’s time to swap dogma for reason and give Parliament the final say over the future of UK-EU relations.”
Notes to editors:
The leaked Treasury document is reported here: http://www.independent.co.uk/news/uk/politics/brexit-treasury-fears-leaked-document-article-50-theresa-may-eu-referendum-exclusive-a7624706.html.