UK economy could be up to 6% worse off due to PM's Brexit deal
A new study has found that the UK’s economy could plummet by 5.5 per cent by 2030 due to the prime minister’s Brexit deal.
The research was conducted by the London School of Economics, King’s College and the Institute for Fiscal Studies. A fall in immigration and new trade barriers are said to be some of the reasons this could happen.
Theresa May’s deal could also end ‘free movement’, meaning skilled and unskilled immigration would also reduce. However, the report - published by The UK in a Changing Environment - discussed that regulatory barriers to services and goods are set to increase.
Prof Anand Menon, director of The UK in a Changing Europe, said: “Obviously, this kind of economic modelling needs to be treated with appropriate caution.
“However, our estimates provide a clear indication of the broad scale of the impact of the deal negotiated by the prime minister.”
However,a government spokesperson has backed up the deal, suggesting: “This deal will protect jobs and our economy while respecting the result of the referendum.
“It delivers an economic partnership with the EU closer than any other country enjoys, is good for business and is in our national interest.”
Now, Theresa May will have to fight her case across to MPs in order for the deal to go ahead. If not, this could result in a ‘no deal’ Brexit or even a general election.