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Hard Brexit Could Cost UK £66 Billion In Lost GDP

GDP, Gross Domestic Product, is the total value of goods produced and services provided in the UK over the course of one year.

The draft Cabinet committee paper seen by The Times is based on forecasts from the controversial study into the predicted impact of quitting the EU published by George Osborne in April during the referendum campaign.

Although the then chancellor faced widespread criticism over the report, the Treasury stands by its calculations, according to The Times.

The documents says: “The Treasury estimates that UK GDP would be between 5.4% and 9.5% of GDP lower after 15 years if we left the EU with no successor arrangement, with a central estimate of 7.5%.”

It adds: “The net impact on public sector receipts – assuming no contributions to the EU and current receipts from the EU are replicated in full – would be a loss of between £38 billion and £66 billion per year after 15 years, driven by the smaller size of the economy.”

Brexit backers who have seen the documents told the newspaper the figures were unrealistic and claimed there was a push to “make leaving the single market look bad”.

“This danger is precisely why Parliament must be involved in the principles to guide the Brexit negotiations.

Article source: http://www.huffingtonpost.co.uk/2016/10/11/hard-brexit-gdp_n_12436638.html?utm_hp_ref=uk-politics&ir=UK+Politics