Boris Johnson’s Brexit deal could inflict ‘£70bn hit’ on UK economy
The UK economy could suffer a £70bn hit from Boris Johnson’s Brexit deal, according to a new report from an influential think tank.
New research from the National Institute of Economic and Social Research (Niesr) has claimed that GDP in 10 years would be 3.5 per cent weaker under Johnson’s deal than if Britain were to remain in the EU.
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The economy is estimated to be 2.5 per cent smaller now than it would otherwise have been as a result of the 2016 Brexit vote, Niesr added.
In one of the first major financial assessment’s of Downing Street’s agreement with Brussels, Niesr said that it did “not expect economic activity to be boosted by the approval of the government’s proposed Brexit deal”.
The think tank concluded that customs and regulatory barriers would “hinder goods and services trade with the continent leaving all regions of the United Kingdom worse off than they would be if the UK stayed in the EU”.
The Treasury said it plans to deliver a “more ambitious” agreement with the EU than “Niesr is basing its findings on”.
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A spokesman said: “We are aiming to negotiate a comprehensive free trade agreement with the European Union, which is more ambitious than the standard free trade deal that NIESR has based its findings on.”
The report, which said that Johnson’s deal would not generate a “deal dividend”, comes a day after Parliament gave the go-ahead for a general election on 12 December.
The vote before Christmas could be seen as a proxy for a second referendum, with the PM hoping to land a majority to ratify his deal with the EU early next year.