A no deal Brexit will cost Tower Hamlets £11.59 billion


New research by the LSE's Centre for Economic Performance and the Liberal Democrats has revealed just how damaging a no deal Brexit will be to Tower Hamlets.

A no deal Brexit will mean an economic hit of £11.59 billion to Tower Hamlets.  

David Davis and other members of the cabinet have recently been talking up a no deal Brexit, but this data shows that the country simply couldn't afford it.

If the UK exits the EU in March 2019 without a deal, Britain's economic output (gross value added) in the five years after Brexit would be reduced by 5.3%, or £430 billion. 
 
Even if the UK agreed to a Norway style arrangement with full single market access, this would still result in a reduction to five-year economic output of 2.9%, or £235 billion. 

Liberal Democrat Spokesperson Elaine Bagshaw said:
 
 "These figures a real indictment of the government's strategy. David Davis is still talking up the possibility of a no-deal Brexit, yet these figures suggest that would cost Tower Hamlets a ruinous £11.59 billion over five years. That's over £38,000 each for Tower Hamlets residents. Even a relatively soft Brexit could cost the area £5.79 billion.
 
"The government must rule out a no-deal to end the uncertainty and confirm its commitment to stay in the single market and customs union.
 
"The study suggests that for Tower Hamlets, no deal would be devastating."


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