A report released today by the National Institute of Economic and Social Research (NIESR) shows disposable income of UK households is 2% lower than it would have been without Brexit.
That works out as £600 less in disposable income per household. The NIESR report links this fall in disposable income and the commensurate fall in living standards directly to Brexit. NIESR also say that the burden could “weigh more heavily on unemployed, single parent and pensioner households.”
Commenting on today’s news, Chuka Umunna MP, leading supporter of Open Britain, said:
“The Brexit squeeze is very real and it is already hitting people in this country in their pockets.
“Far from the Brextremist promises about ‘sunlit uplands’, the reality is households across the country are now £600 worse off as a direct result of Brexit.
“Everyone has the right to look at reports like today’s and ask themselves if the realities of Brexit match up with what was promised during the referendum campaign. If not, in a democracy, people have the right to change their minds.”
Notes to editors:
The relevant quote from the NIESR report is as follows:
“It is almost certain that the relative deterioration in the UK economy and the accompanying fall in living standards over the past year are a consequence of the vote by the British people to leave the European Union. Had sterling not depreciated and the economy continued to grow at its previous rate, as would have been likely with an improving global backdrop, real household disposable income per head might have been more than 2 per cent higher than now, worth over £600 per annum to the average household. And, as pointed out by Stephen Clarke, Ilona Serwicka and L. Alan Winters in this Review, the effects of a higher cost of living caused by Brexit might weigh more heavily on unemployed, single parent and pensioner households.”
The full NIESR report can be found here.