A no-deal Brexit is expected to cost the country 80 billion pounds, according to the British government’s secret report leaked to the Guardian and some other sources, Interfax reports.
With a so-called “hard” Brexit, budget deficit may grow by 120 billion pounds in the next 15 years. However, the saving of 40 billion pounds from leaving the EU will reduce the country’s net loss to 80 billion pounds.
Despite the calculations of the UK’s government, experts doubt the country will get extra 40 billion pounds. They are convinced that this amount will require easing of regulation, including regulation of environment protection. The British government has already announced it will not accept such measures.
Besides, a hard Brexit will result in a 21% rise of retail prices. Alimentary products and drinks will go up 17%.
The regions that voted for leaving the EU, namely the north-east and the Western Midlands, will be affected the most. GRP growth will be 16% and 13% less, respectively, than under a normal scenario. The least harm will be done to the economy of London where 60% of the population voted to stay in the EU.