Brexit’s disastrous impact on UK trade revealed in stark OBR warning

Brexit is on track to downsize the UK trade by 15 percent, the government’s independent financial watchdog warned.

Supporters of a Leave vote argued that British trade would receive a boost from leaving the EU. European Union ahead of the 2016 referendum.

But in documents published nearby Rachel Reeves‘ Budget The Office for Budget Responsibility (OBR) said that “weak import and export growth over the medium term partly reflects the ongoing impact of Brexit, which we expect to reduce the overall trade intensity of the UK economy by 15 percent in the long term.” “

These figures led to claims that Brexit was the “elephant in the Chancellor’s office”.

The Prime Minister said he wants to reset the UK’s relationship with the EU, fixing it for the benefit of “future generations”.

But Labor has specifically ruled out any return to the EU’s customs union or single market, despite calls to go further and faster on those plans, amid warnings about the cost of Brexit to the wider economy.

SNP MP Stephen Gethins said: “At a time when the Chancellor is talking about the deficit, the OBR is releasing figures illustrating the horrific consequences of Brexit. This has had a devastating impact on our businesses, the public sector and the wider economy.

“Repeal, rather than the Tories’ hard Brexit, is the biggest action the Chancellor can take today to boost economic growth and the Treasury’s finances.”

Brexit is “the elephant in the chancellor’s office”, he added.

Dr Mike Galsworthy, chairman of the European Movement UK campaign group, said: “The latest figures from the independent OBR on UK trade are just the latest confirmation of what we already knew. Brexit is not working for working people.

“It can’t be made to work and it can’t be made to work. Red tape is having a devastating impact on our economy, particularly on British businesses whose supply chains depend on the EU. The Government must capitalize on the reset of our relationship with Europe and ensure long-term stability for British business.

He added: “It is now foolhardy to ignore the serious damage that continues to be caused to public finances. It has long been a drain on the financial and social well-being of each of us – and yet it is completely ignored as if it does not exist. .

“This absurd situation must end. We now need an open, public inquiry into the true cost of leaving the European Union and the options for repairing the scandalous destruction caused.”

The Ministry of Finance was approached for comment.