The UK faces a £25bn Brexit budget blow due to slower growth and higher inflation, the IFS has warned – making the case for Theresa May to ditch plans for a hard Brexit and protect the UK’s membership of the single market.
Analysis by the IFS is the latest sign that Brexit is having a negative impact on the UK economy even before Article 50 is triggered.
The IFS said that “virtually all” forecasters had revised down their predications for growth and revised up their expectations for inflation in the years ahead.
Commenting, SNP MSP Stuart McMillan said:
“With each passing day the negative impact caused by Brexit becomes clearer – and we’re feeling the hit even before Article 50 is triggered.
“The collapse in the value of the pound is beginning to hit consumers in the pocket and Scottish businesses have warned that investment is being delayed while skilled workers are less likely to move here.
“A hard-right Tory Brexit threatens 80,000 Scottish jobs and could cost Scotland’s economy by up to £11 billion a year by 2030.
“This latest warning should be a reality check for the Tories – it’s time to ditch plans for a hard Brexit and protect our membership of the single market.”