Summary
London Mayor Sadiq Khan, on Thursday, unveils a current report asserting that Brexit has inflicted a substantial economic blow on the UK, costing over $178 billion to date, with a projected 10% shortfall by 2035.
London Mayor Sadiq Khan, a vocal opponent of Brexit, on Thursday unveiled a report indicating that the UK’s departure from the EU has led to a considerable economic downturn, resulting in an annual cost of 140 billion pounds ($178 billion). The report, commissioned from economic consultants Cambridge Econometrics, forecasts a potential 10% reduction in the economy by 2035.
In a pre-speech statement, Khan expressed his concern, stating, “It’s now obvious that Brexit isn’t working. The hard-line version of Brexit we’ve ended up with is dragging our economy down and pushing up the cost of living.”
As the Labour Party holds a substantial lead over Prime Minister Rishi Sunak’s Conservatives ahead of an upcoming election, details of how Labour Party leader Keir Starmer would strengthen ties with the EU remain cautious.
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Cambridge Econometrics’ estimates of Brexit costs are higher than some other recent assessments. The National Institute of Economic and Social Research (NIESR) suggested in November that Brexit had reduced the economy by 2%-3%, with expectations of a rise to 5%-6% by 2035. Bank of England policymaker Jonathan Haskel estimated in a private capacity that Brexit had lowered GDP by 1.3% by the end of 2022.
Cambridge Econometrics anticipates Brexit to decrease annual economic growth in Britain by 0.4 percentage points until 2035, leading to a loss of 3 million jobs and a one-third reduction in investment.
Assessing the consequences of Brexit is complicated by the ongoing COVID-19 pandemic. Increased net migration to Britain, influenced by a new work visa system, has countered a decrease in EU immigration, which previously did not require visas.