The slower growth is also weighing on the treasury’s revenue and the tax rises announced in the autumn fiscal statement wouldn’t be necessary if the United Kingdom were still in the EU common market, the report said.
Departing the EU single market reduced investment by 11 per cent and goods trade by 7 per cent in the second quarter this year, and that has contributed to Britain trailing behind almost all other major economies since the end of the pandemic, the report noted.
The exit from the European Union (EU) has resulted in a 5.5 per cent smaller British economy than it would have been and added to the squeeze on public services, according to research organisation Centre for European Reform (CER), whose deputy director John Springford recently said in a report that Brexit hit has inevitably led to tax rises.
Services trade was around the same under both scenarios, indicating the smoother transition of firms within this sector, the report added.
Fibre2Fashion News Desk (DS)