The UK could lose up to £66bn a year if it pursues a “hard Brexit” and leaves the EU single market and customs union, according to leaked documents from the Treasury.
If the UK is forced to fall back on World Trade Organisation default rules for trade with the European Union, it could cause the GDP to fall by up to 9.5 percent.
Car manufacturers will be some of the worst affected by a loss in access to the single market, with Nissan CEO Carlos Ghosn already telling the government further investment in the UK by his firm depends on the UK’s trade deal with the EU.
The impact of such a decline would be devastating on public services, a far cry from the Leave campaign’s promises of an extra £350m per week investment in the NHS.
The information comes as David Davis made clear his preference for the UK to make a complete break in all relations with the EU, a policy that has caused the value of the pound to fall below the euro in many exchanges.
Brexiteers who have seen the leaked documents maintain that the figures are “unrealistic” designed to “make leaving the single market look bad”, continuing their post-fact policy towards everything that disagrees with them.
Liberal Democrat leader Tim Farron said the leaked documents showed that a “hard Brexit would be an act of economic vandalism.”