View more on these topics

Brexit would shrink UK economy by 6% says Osborne

2014-Budget-George-Osborne-Walking-700.jpg

Chancellor George Osborne has warned that a vote to leave the EU would result in the UK’s GDP falling by more than 6 per cent.

In a letter published in The Times, Osborne said that the Treasury’s economic analysis showed that ever UK household would be annually worse off by £4,300.

Focusing on a Canadian-style relationship with the EU, that would see the UK negotiating a series of bilateral deals with Europe, Osborne said: “There would be enormous costs for our public finances, far outweighing the little over 1p in every £1 in taxes raised that we currently contribute net to the EU.

“There wouldn’t be more money to spend on the NHS, defence and the like; there would be far less. The conclusion is clear: for Britain’s economy and for families, leaving the EU would be the most extraordinary self-inflicted wound.”

It comes days after the Chancellor also warned that leaving the EU would also impact mortgage rates.

Speaking to the BBC last week, Osborne said: “The Bank of England is independent and it makes its decisions on interest rates.

“But the overwhelming view of the experts here in Washington is that if Britain leaves the EU, prices would go up and there would be instability in financial markets.”

He added: “That means it’s likely that mortgage rates would go up, families would pay the price of Britain leaving the EU.”

The UK will vote on EU membership on June 23.

Recommended

EU-Euro-Europe-Eurozone-700x450.jpg
2

IMF warns Brexit could cause severe global damage

A vote for the UK to exit the European Union could do “severe regional and global damage”, says the IMF, as it downgrades its global growth forecast for the second time this year. A vote for Brexit at the June referendum would disrupt established trading relationships and add to political strains in Europe stemming from the Syrian […]

Euan-Munro-700x450.jpg
8

Brexit could drag the UK into recession, warns Aviva Investors

The UK economy is likely to dip into a recession if the country decides to leave the European Union, Aviva Investors’ chief executive Euan Munro has warned. “We believe there would be a significant and negative knock-on effect on business sentiment, which would likely push the UK economy into recession towards the end of this […]

The return of emerging markets

Ewan Thompson, Head of Emerging Market Equities, Neptune Although in political terms 2016 will be remembered for the seismic shocks of the Brexit vote and Trump’s presidential victory, the year was also a watershed for the global economy and emerging markets in particular. Following five years in the wilderness, the conditions are now in place […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Brexit will not shrink UK economy by 6% says Horlock

  2. You know George, that the project fear scare mongering is so excessive, it’s a joke and so are you.

Leave a comment