Theresa May's Deal Could Leave UK £100bn Poorer Each Year in First Decade outside EU

• 11.26.2018, 14:51
•  Europe,  World

Sky News

Theresa May’s Brexit deal could leave the average person more than £1,000 worse off per year in the first decade outside of the EU, according to the first independent analysis of Britain exit terms.

As European leaders endorsed the prime minister’s plan, new research revealed the agreement could hit the UK’s economy by £100bn a year by 2030, equating to an average of £1,090 per person, The Independent reports. 

The report by the National Institute for Economic and Social Research (NIESR), commissioned by the People’s Vote campaign, also warned that the government’s preferred outcome could see a 46 per cent hit to trade with the EU and a 21 per cent fall in foreign direct investment.

The report said: "Our key finding is that if the government’s proposed Brexit deal is implemented so that the UK leaves the EU customs union and single market in 2021, then by 2030, GDP will be around 4 per cent lower than it would have been had the UK stayed in the EU. 

"This is largely because higher impediments to services trade make it less attractive to sell services from the UK. This discourages investment in the UK and ultimately means that UK workers are less productive than they would have been if the UK had stayed in the EU."