Labour could avoid potential economic and political turmoil in this week\u2019s Budget by indicating it\u2019s ready to change its tune on Brexit, the Rejoin EU Party says.<\/p>\n
Chancellor Rachel Reeves is reportedly planning to freeze income-tax thresholds and hike tax in other areas to try to plug a gap in the public finances that some reports have suggested could be as high as \u00a330bn.<\/p>\n
City analysts have warned that the measures could hit the bond market and spark a challenge to Keir Starmer\u2019s leadership if they fail to shore up fragile investor confidence.<\/p>\n
But Labour<\/a> could avoid all this \u2013 and benefit from the immediate boost to market sentiment that would follow \u2013 if it signalled a willingness to consider re-joining the European single market, customs union and ultimately the EU itself, the Rejoin EU Party says.<\/p>\n Rejoin EU believes the economic boost from removing the mountain of extra red tape<\/a> and trade barriers caused by Brexit would more than cover the economic black hole facing the government.<\/p>\n It comes after a study by US-based research group National Bureau of Economic Research suggested that the economic damage from Brexit could be double the 4% hit to GDP that economists originally forecasted<\/a>.<\/p>\n Rejoin EU Party Chairman and former MEP Brendan Donnelly said: \u201cIt\u2019s become clearer with every week<\/a> and every academic study that passes that the economic damage from Brexit is even greater than the most pessimistic predictions.<\/p>\n We\u2019ve had one recently suggesting the loss might be as high as 8%, which would easily plug any funding gap that Rachel Reeves<\/a> might think she has to fill.<\/p>\n \u201cReeves wants to have her cake and eat it. She claims, rightly, that Brexit has damaged the British economy<\/a>, but also continues to imply that the fault lies with the kind of Brexit we have, not with Brexit itself.<\/p>\n