Thursday, August 02, 2018
Economists claim that Theresa May’s Brexit plan will cost us £500 a year
The National Institute of Economic and Social Research (NIESR) has published its calculation of the price of the prime minister’s Chequers proposals, which they say would weaken economic ties and cost us £500 a year each. They add that if we leave with no deal, then each individual will lose £800 a year.
As the Independent reports, the NIESR study warned the UK economy was on course to grow at its weakest rate since 2012, even if it retained nearly full access to the EU for its goods and services. The problem is that the white paper that followed Chequers only seeks to protect goods by maintaining alignment with the EU, while excluding services, even though they make up 80 per cent of the UK economy.
They add that their estimates do not include the likely impact on productivity which could, on some estimates, double the size of the losses. The NIESR predict that the UK economy will grow by 1.4 per cent in 2018 and by 1.75 per cent in each succeeding year, but only if close to full access to the EU is retained.
With the Foreign Secretary, Jeremy Hunt suggesting that it is now inevitable that the UK could come crashing out of the EU without a deal, these figures begin to look more and more realistic.
The NIESR report underlines the consequences of the chaos which still prevails at the heart of the UK Government. Instead of sitting down with the EU from day one to protect our interests, the Tories have relentlessly and fruitlessly pursued the undeliverable promises on which the Brexit referendum was won, have failed to articulate any clear vision for what a post-Brexit UK will look like and have catastrophically messed up the whole process in a glorious cacophony of infighting and blood-letting.
The failure of the official Labour opposition to highlight these failings and to try and force the Government's hand has been complicit in this fiasco. Labour have been too busy propping up Theresa May and her Brexit fantasy to be able to see the damage it is doing to the country.
Jeremy Hunt seeks to pin the blame on the EU, but at least Michel Barnier had a coherent negotiating position with clear red lines. That is something the UK Government still lacks and, we will have to pay the price for that.
As the Independent reports, the NIESR study warned the UK economy was on course to grow at its weakest rate since 2012, even if it retained nearly full access to the EU for its goods and services. The problem is that the white paper that followed Chequers only seeks to protect goods by maintaining alignment with the EU, while excluding services, even though they make up 80 per cent of the UK economy.
They add that their estimates do not include the likely impact on productivity which could, on some estimates, double the size of the losses. The NIESR predict that the UK economy will grow by 1.4 per cent in 2018 and by 1.75 per cent in each succeeding year, but only if close to full access to the EU is retained.
With the Foreign Secretary, Jeremy Hunt suggesting that it is now inevitable that the UK could come crashing out of the EU without a deal, these figures begin to look more and more realistic.
The NIESR report underlines the consequences of the chaos which still prevails at the heart of the UK Government. Instead of sitting down with the EU from day one to protect our interests, the Tories have relentlessly and fruitlessly pursued the undeliverable promises on which the Brexit referendum was won, have failed to articulate any clear vision for what a post-Brexit UK will look like and have catastrophically messed up the whole process in a glorious cacophony of infighting and blood-letting.
The failure of the official Labour opposition to highlight these failings and to try and force the Government's hand has been complicit in this fiasco. Labour have been too busy propping up Theresa May and her Brexit fantasy to be able to see the damage it is doing to the country.
Jeremy Hunt seeks to pin the blame on the EU, but at least Michel Barnier had a coherent negotiating position with clear red lines. That is something the UK Government still lacks and, we will have to pay the price for that.
