Britain will be economically worse off in any scenario outside the EU, with a no-deal Brexit rendering GDP 9.3 percent smaller than it would otherwise be in 15 years' time, the government said Wednesday.
Britain's Secretary of State for Exiting the European Union (Brexit Minister) Stephen Barclay leaves 10 Downing Street in London on November 28, 2018. (Photo: AFP)
The government's plans for post-Brexit ties with the European Union would still cost the economy around 3.9 percent of gross domestic product over 15 years, a report by the Treasury found.
Finance minister Philip Hammond said the departure deal agreed Sunday between Britain and the EU was the optimum way to minimise the cost of leaving the bloc.
The report comes as Prime Minister Theresa May takes the divorce deal to a sceptical Scotland, where the fishing industry is concerned about EU access to British waters.
May has less than a fortnight to convince hostile MPs to back the deal in a December 11 vote and avoid plunging Brexit into chaos, four months out from Britain's March 29 departure date.
The report does not exactly model for the deal struck with Brussels, the outlines of which remain vague.
It found that a reduction in EU immigration would cost the economy more than the current free movement rules.
However it leaves the bloc, Britain's GDP will taper even accounting for the new trade deals it will be able to sign, including with the United States.
"This analysis does not show that we will be poorer in the future than we are today," May told lawmakers in parliament.
"It shows we will be better off with this deal."
"Our deal is the best deal available for jobs and our economy that allows us to honour the referendum," the 2016 vote to leave the EU.