Four important economic reports published today have made painfully clear that Brexit is having devasting economic consequences for working people. Investment in the UK from elsewhere in the EU has decreased, GDP growth has slowed to a paltry 0.2%, annual household incomes are now £1,500 lower than they were just before the referendum (and also lower than pre-referendum forecasts) and it is being reported that any kind of disorderly Brexit would lead to lower economic growth in both the short and long term.
- A report by the Centre for Economic Performance at the London School of Economics showed that due to Brexit, the UK has lost out on £3.5bn worth of investment from the EU27 and UK investment in the EU27 has increased by 8.3bn over the same period. The report also showed that there was no evidence of any kind of “Global Britain” effect.
- ONS GDP figures for Q4 2018 published today showed that economic growth has slowed to 0.2% in 2018, and business investment decreased by 1.4% in Quarter 4 2018, the fourth consecutive quarter in which there has been a decrease in growth. ONS also estimated that GDP growth was estimated to have slowed to 1.4% between 2017 and 2018, the weakest it has been since 2009.
- The Resolution Foundation have today that household incomes were around £1,500 per year lower at the end of 2018, than they were before the Brexit referendum and that wages were also £1,500 lower than they were forecast to be prior to the Brexit referendum.
- The Institute for Fiscal Studies published its Outlook for the 2019 spending review, with one of its key findings being that a “disorderly Brexit” would lead to lower economic growth in the short and long term.
Pat McFadden MP, a leading supporter of People’s Vote, said:
“Four major reports today have identified how Brexit is damaging the United Kingdom: Business investment from the EU is down 11 per cent; wages are down by £1,500 a year; growth is almost at a standstill; and we need a further £5 billion in public spending just to avoid real-terms cuts.
“We hear a lot about Project Fear but this is project reality. Britain is being damaged by the uncertainty caused by the way Brexit is descending into chaos. And, if the Government’s proposed departure from the EU goes ahead, it will merely reinforce the economic harm with even the Treasury admitting it would leave the UK £100 billion-a-year worse off over the next decade.
“A Withdrawal Agreement that kicks all the decisions into the long grass and a Political Declaration that makes a virtue of being vague about the future provides no clarity and no closure. The simple truth is that there is no deal that will leave the UK better off than the deal we already have by remaining in the EU. The majority of the country can see the immense self-harm being caused by Brexit.”