True Cost of Brexit

THE COST OF BREXIT – THE TRUTH NOT THE LIES

One of the main claims of the Leave campaign pre-referendum was that we would be able to pay the £350 million a week we pay to the EU into the NHS instead. This claim has not been repeated since then. Why? Because it was a lie. And what’s more they knew this when they made it!

Why was it a lie that they knew full well about? Well because, whilst £350 million a week may be the gross contribution we pay to the EU each week, it ignores what we get back from the EU in return. From this gross contribution of £17.8 billion per annum we get back from the EU

  • Our rebate of £4.9 billion
  • £4.4 billion which the EU gives the UK to spend here on such things as agriculture support, regional development grants, research and development etc.

All of this leaves a widely accepted net contribution of £8.5 billions a year, less than 50% of that claimed by the Leave Campaign pre referendum.

According to Full Fact, an independent Brexit monitoring organisation, this sum should be discounted further by the £1.4 billion the EU gives the private sector and the £0.8 billion of EU aid spending that should be counted against our target, leaving a final net contribution of £6.3 billions a year, a little over a third of that claimed by the Leave c

But what is Brexit going to cost us? For a start the Chancellor has said that we need to borrow £58 billions over the next five years alone to cover costs directly incurred by Brexit. The EU has said that the cost of the “divorce” will be between €40 – €60 bn. It is clear that inflation is already increasing and at a faster rate than earnings so everyone is seeing their incomes squeezed.  Brexit negotiations will be so complex that it is reported that an additional 30, 000 civil servants will be needed alongside an army of Consultants reportedly charging up to £5000 per day!

Brexit is already costing the UK. The Centre of Economic Policy Research has recently said that the Brexit vote has already caused GDP to be 1.3% lower than it would otherwise have been. With GDP at just under £2 trillions a year this equates to a hit of over £25bn equivalent to nearly £400m a week since Brexit! So much for the now discredited £350m a week for the NHS!

In addition to all this the Treasury estimates that

  • By 2031 GDP would be between 5.4% and 9.5% lower if we leave the EU on the Brexit terms  Mrs. May has set her stall out on. On average this equates to a cumulative hit to the economy of £144bn a year, equivalent to over £7,500 for every household in the country over this period!
  • By 2031 the net impact of Brexit on public sector receipts would be a reduction of between £38bn and £66bn a year. That’s more than double the current NHS funding shortfall of £22bn and over three times the falsely claimed £350 millions per week for the NHS. So not more money for the NHS, rather the reverse and even more austerity!
  • And even then the well respected Centre for Economic Performance considers that the Treasury’s estimates significantly underestimate what the negative impact of  Brexit will be, so it could be even worse!

All of this means that Brexit will not save us money, it will cost us money, at least £4,000+ over the next five years alone for every household in the country or as much as £9,500+ according to the London School of Economics!

“Nobody voted for Brexit to be worse off” according to the Chancellor, Phillip Hammond, but it now looks as though that is the reality of the situation we will find ourselves in.

Is it not time to face up to this reality before it’s too late?