Brexit could cost the UK economy £54 billion, says first impact assessment
The UK economy should expect a £54 billion hit by 2030 due to Brexit, according to the initial set of taxpayer-funded assessments.
The alarming figure depends on the type of deal reached as the UK negotiates to leave the European Union.
The economic study, commissioned by mayor of London Sadiq Khan after the Government failed to produce one, investigates the impact of multiple Brexit outcomes.
It looks at the impact on various regions and industries and follows Brexit Secretary David Davis admitting that the Government had not conducted any impact assessments.
Conducted by Cambridge Econometrics, the assessment also considers scenarios such as leaving the single market, the customs union – or leaving both.
It also assesses the impact of a ‘hard Brexit’ in the event that Davis’ negotiations in Brussels fail to end with a transitional deal.
The mayor told Sky: ‘This independent analysis should help guide the Government to the best outcome for London and the UK.
‘If the Government continue to mishandle the negotiations we could be heading for a lost decade of lower growth and lower employment.’
He added: ‘The analysis concludes that the harder the Brexit we end up with, the bigger the potential impact on jobs, growth and living standards.
‘Ministers are fast running out of time to turn the negotiations around. A ‘no deal’ hard Brexit is still a very real risk – the worst possible scenarios.’
Khan also blasted the Government for failing to conduct any sort of impact assessment. He said the ‘complete lack of preparation’ is ‘irresponsible’, ‘astonishing’ and that the Tories were putting party politics ahead of the national interest.
He added that he was releasing the documents because British people and businesses deserve to know how Brexit will impact their lives and finances.
Khan said the research should prompt the Government to change tact and negotiate a deal that will allow the UK to remain in the single market and customs union.