Shadow chancellor: UK economy could shrink by 4% after Brexit
Rachel Reeves warns that leaving the European Union could cost each household £2,000 a year
The shadow chancellor has warned that the UK economy could shrink by 4% after Brexit, costing each household £2,000 a year.
Rachel Reeves said the government's own analysis showed that GDP would be 4% lower in 15 years' time if the UK left the EU. She said this would mean a £2,000-a-year hit to household incomes. The government has said it is confident that the UK can negotiate a good deal with the EU that will protect the economy. But Reeves said the government's own analysis showed that even a "best-case scenario" Brexit would damage the economy. She said: "The government's own analysis shows that Brexit will damage our economy, costing each household £2,000 a year. "This is a huge risk to our economy and our living standards. "The government needs to come clean with the public about the real costs of Brexit." The government has said it is confident that the UK can negotiate a good deal with the EU that will protect the economy. A government spokesperson said: "We are confident that we can negotiate a good deal with the EU that will protect our economy and our jobs. "We are determined to make Brexit a success and we are working hard to ensure that we get the best possible deal for the UK." The UK is due to leave the EU on 29 March 2019.
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