Hard Brexit could cost up to £66 bln a year: Times
18:02
The British treasury could lose between £38 and £66 billion a year for 15 years if Britain leaves the EU without negotiating a new trade agreement, according to documents prepared by the Ministry of Finance, which were obtained by The Times newspaper.
According to analysis published on Tuesday, the British GDP could fall for15 years by as much as 9.5 percent if Britain has to trade with other EU countries on the basis of World Trade Organization (WTO) regulations instead of the existing rules. “Regarding the main consequences, trade would fall by about 20 percent, along with the inflow of foreign investments, causing a decrease in productivity,” warned the document's authors.
As Times journalists point out, £66 billion is equivalent to nearly 10 percent of Britain's annual tax revenue or 65 percent of the budget of the National Health Service in England.
British Prime Minister Theresa May announced the launch of the Brexit procedure by the end of March 2017, which will trigger two-year negotiations for a new agreement between the parties. If the negotiations fail, trade between the UK and the 27 other EU Member States will be governed by WTO regulations.
