Leaked document shows any Brexit deal will hit the UK's economy
A leaked government document has suggested that the UK economy will grow slower than its EU counterparts, no matter the deal.
Buzzfeed News reported that growth found over the next 15 years could be up to eight per cent lower than if the UK stayed in the European Union. The document is said to show different scenarios, and all made the country worse off.
However, government sources have argued that the UK’s economy will remain the same, but its predominant trade deal option was not assessed.
International trade secretary, Liam Fox, said: “I know there are always disappointed individuals but they’re going to have to live with disappointment.”
In addition, chancellor Philip Hammond angered Leave voters after admitting the UK and EU’s economies could only move “modestly” away from one another post-Brexit.
On a whole, the study reported that the government would be worse off in all situations, putting Theresa May into even deeper pressure with her MPs and Cabinet.
The leaked report has shown that the UK’s economic growth would be five per cent lower if a free trade deal was negotiated, and two per cent even if the UK were to continue following single market rules.
On Monday (January 29), the EU set out demands for the transition period for when the UK leaves in March 2019. It wants the country to follow its rules, and not to be involved in any form of decision making.
In other news, the EU Bill (of withdrawal) will soon begin the passage through the House of Lords.