Britain’s exit from the European Union
image type. Photo: Matt Dunham
A new report shows that when Britain left the European Union, it led to a sharp drop in gross domestic product and an increase in taxes.
Compared to the scenario in which Britain remained in the EU, GDP fell by 5.5 percent, investment fell by 11 percent, trade in goods fell by 7 percent, while trade in services almost fell. This is shown in the report The Cost of Brexit to June 2022, written by the Center for European Reform, CER.
The report notes that Brexit has led to massive tax increases, because it is the only way to avoid a slow-growing economy where public liabilities are as extensive as before.
The report’s authors note that had the British economy stayed in the EU, tax revenues would have been around £40 billion higher annually.
If it weren’t for Brexit, we might not have talked about an austerity budget – there was no need to raise taxes and cut spending, Michael Saunders, a former Bank of England official, told Reuters.
Read the report
Reuters’ exit from the European Union resulted in a GDP loss of 5.5 percent
“Extreme tv maven. Beer fanatic. Friendly bacon fan. Communicator. Wannabe travel expert.”
More Stories
The British economy shrinks for the first time in seven years – and the pound weakens foreign
Starmer promises nationalization of trains and new housing
UK economy hit hard by Brexit – country's credit rating downgraded | Foreign