Brexit is costing the UK up to \u00a390bn in lost tax revenues every year, according to new analysis. <\/p>\n
This week, Rachel Reeves delivered her autumn budget in which she announced \u00a326bn in tax rises. <\/p>\n
And whilst critics and opponents have been quick to attack the chancellor for this, it can\u2019t be ignored that one of the main reasons for these decisions is the disastrous impact Brexit has had on our economy. <\/p>\n
READ NEXT: John Major labels Brexit an \u2018act of collective folly\u2019<\/a><\/strong><\/p>\n This has been laid bare by a new analysis from the House of Commons library, which estimates that leaving the European Union is costing the Treasury up to \u00a390bn a year in lost tax revenue.<\/p>\n The analysis, commissioned by the Lib Dems, also found that the average Briton has seen a hit to GDP per head of between \u00a32,700 and \u00a33,700, the Independent<\/a> reports. <\/p>\n Speaking before the budget, Lib Dem leader Ed Davey said Brexit is \u201cwhy we have the highest taxes ever, that is why we have sky-high bills, that is why we have a cost of living crisis.\u201d<\/p>\n He urged Labour to drop its red lines and negotiate a new customs union with the EU, to \u201cfix our broken relationship with Europe\u201d.<\/p>\n After the budget was announced, Lib Dem deputy leader Daisy Cooper said it was time \u201cto be honest about the damage Brexit has done.\u201d<\/p>\n \ud83d\udea8BREXIT BUDGET\ud83d\udea8<\/p>\n Daisy Cooper MP: “There is a \u00a390 billion hit to treasury income as a result of the Brexit deal.”<\/p>\n “Brexit has been a disaster for our country. It has been a disaster for our economy.” pic.twitter.com\/K48PgeNMct<\/a><\/p>\n \u2014 Best for Britain (@BestForBritain) November 26, 2025<\/a><\/p><\/blockquote>\n Sir Nick Harvey, chief executive of European Movement UK, said Rachel Reeves\u00a0would have faced \u201cvery different choices this week if the UK hadn\u2019t mangled its ties to its biggest trading partner.\u201d<\/p>\n He continued: \u201cThe red tape and uncertainty of the past nine years have hit every single one of us in the pocket.<\/p>\n \u201cThis new analysis from the House of Commons Library shows just how much economic harm leaving the EU has wreaked on us both nationally and individually. Billions lost in tax every year, and all of us several thousand pounds poorer.<\/p>\n \u201cPublic opinion is now clear \u2013 Brexit has been an unmitigated disaster for the UK\u2019s economy.\u00a0It\u2019s time for the government to fully acknowledge the ongoing harm leaving the EU has done, and to revisit its \u2018red lines\u2019, to start to breathe some life back into the UK\u2019s finances.\u201d<\/p>\n Earlier this month, a study from respected American think tank, the National Bureau of Economic Research, found that leaving the EU had resulted in the UK\u2019s GDP being between 6 per cent and 8 per cent smaller<\/a> than it could have been.<\/p>\n As per their figures, the UK\u2019s GDP (Gross Domestic Product) had fallen by as much as 8% from where it should be since 2016, with the impact \u2018accumulating gradually\u2019 as the years have gone by. Investment into the country is also estimated to have dropped sharply, by roughly 12-18%.<\/p>\n Along with this, both employment and productivity have also been severely hampered, with each data set estimated to have been reduced by 3-4% from previous projections within the last decade or so \u2013 which might go a long way towards explaining the general malaise Britain is experiencing.<\/p>\n \t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n