In July 2018 we reported(1) the findings of analysis conducted by the Centre for European Reform (CER) showing that there is no ‘Brexit Dividend’. In fact the UK economy was already 2.1% smaller as result of the Brexit vote equivalent to £23 billion per annum or £440 million per week. So Brexit is already costing us more that the supposed Brexit dividend of £350 million a week claimed by the Vote Leave campaign.
Well, things just got even worse. The CER has published its latest quarterly update(2) and the new analysis shows that the UK economy is now 2.5% smaller than it would have been had we voted to Remain, and the gap is growing. Even though we have still not left the EU, the knock-on hit of the Leave vote to the public finances is now £26 billion per annum, or £500 million a week.
This is really important! There is now £500 million a week less to spend on public services, the NHS, housing, jobs, social care, investment in public transport… It also proves how many were misled into voting Leave on the promise of a Brexit Dividend of £350 million a week that never existed.