Brexit has blown a \u00a340 billion tax hole in the public finances, according to a forecasting audit that finds that the Office for Budget Responsibility\u2019s projections on the impact of leaving the EU have broadly materialised. <\/p>\n
On the ninth anniversary of the leave vote, the OBR\u2019s estimate of a 4 per cent loss in the UK\u2019s long-run productivity has been borne out by declining investment and trade volumes, according to John Springford, an associate fellow at the Centre for European Reform.<\/p>\n
The 4 per cent productivity loss translates to an approximate \u00a340 billion tax loss for the exchequer between 2019 and 2024, a period in which the government raised taxes by \u00a3100 billion. \u201cA large chunk of [the tax rises] would not have been necessary if the UK had voted to remain in the EU or chosen a softer form of Brexit,\u201d Springford said. <\/p>\n
\u2022 Britons may not have right to use e-gates in Europe this \u00adsummer<\/b><\/a><\/p>\n The figures underscore the growth and fiscal implications of leaving the EU at a time when the government is desperate to revive productivity and repair the public finances. In May this year Labour agreed a deal with Brussels to align UK food regulations with the bloc \u2014 a breakthrough that will have limited economic effects but could signal the path to closer regulatory alignment that will make trade in goods and services easier for UK firms. <\/p>\n