Brexit to cost households £4.3k

Brexit to cost households £4.3k

A Brexit would cost British households £4,300 every year, reveals a report from HM Treasury.

Figures released on 18th April showed that switching to a bilateral agreement would leave every Brit £1,800 worse off after 15 years.

Responding to the report, Chancellor George Osborne said: “Leaving the EU would be the most extraordinary self-inflicted wound.

“It’s the biggest decision in a generation and will have profound consequences for our economy, for living standards and for Britain’s role in the world.

“And the price would be paid by British families.”

A Brexit would also see overall GDP fall 6.2%, whilst income tax would rise by 8p.

“Wages would be lower and prices would be higher,” Osborne added.

The Treasury’s analysis also claimed leaving the EU would limit trade and investment, which would be fed through into lower wages and living standards for working people.

Britain’s current membership of the single market removes tariffs, reduces cross-border costs and streamlines international trade.

Leaving the EU single market entirely and adopting World Trade Organisation membership, without any form of specific agreement with the EU, would cost households up to £5,200.

The Treasury reports that three-quarters of foreign investors cite access to the single market as a reason for their investment in the UK.

It is further estimated that 3.3 million jobs are linked to exports from the UK to other EU countries.

Further analysis on the short-term implications of leaving the EU is expected ahead of the referendum on 23rd June 2016.

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