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UK government ramps up Brexit warnings with new economic forecasts

Published 28/11/2018, 11:48
Updated 28/11/2018, 11:50
© Reuters. The Union Jack and the European Union flag are seen flying in the British overseas territory of Gibraltar, historically claimed by Spain

© Reuters. The Union Jack and the European Union flag are seen flying in the British overseas territory of Gibraltar, historically claimed by Spain

LONDON (Reuters) - Britain's government intensified its warnings about a no-deal Brexit, saying it would deliver a big blow to the economy while Prime Minister Theresa May's plan, opposed by many members of parliament, would minimise the hit.

The government said that in a scenario based on the agreement May struck with other European Union leaders on Sunday, the economy would be 2.1 percent smaller in 15 years' time than if the country remained in the bloc.

The forecast assumed no changes to migration rules but some non-tariff barriers.

© Reuters. The Union Jack and the European Union flag are seen flying in the British overseas territory of Gibraltar, historically claimed by Spain

The economy would be 7.7 percent smaller if there is no deal, the government said in a report published on Wednesday.

Latest comments

These forecasts demonstrate and expose the protectionist racket that is the EU. The regulations and requirements imposed by the EU do indeed "protect" companies within the single market.... and make them less competitive in the bigger wider global market. Protectionism and limiting competition for the sake of preserving short-term profits leads to long-term uncompetitiveness. The UK is better off taking the short- and medium-term hit to the economy than staying in the EU.
What's the return on this expense.. What are we to gain if you don't mind me asking?
Most people want a trade deal with Europe but few people want to be part of the United States of Europe. The GOVT has to deliver services for the old, the sick and the needy and money is required for that. We all want a good NHS. The deal appears to delver many of the economic benefits but also control of borders, freedom from European courts, ability to strike own trade deals, sovereignty etc. I remember in the early days of the negotiations we tried our hard line stance and were politely shown the door. This deal is far from perfect but compromises rarely are. I wish politicians would grow up and vote in the national interest rather than their own. Labour have no alternatives and the public know this. It is a shame that this deal was not multi party.
If you think we can walk away with no cost to ours and our children's futures, you are deluded.
if there is a cost to leaving even without a deal in my view the cost is one worth paying
Yes, like a "no" vote would cause a recession. Heard it all before.
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