Brexit would cost UK workers up to £5,000 a year - OECD
Leaving the EU would impose a “Brexit tax” on generations to come, group claims.
Leaving the EU would cost worker’s one month’s income in an additional ‘tax’, according to the Organisation for Economic Co-operation and Development (OECD).
If the UK leaves the EU it would hit market confidence and raise uncertainty which would result in GDP being 3% lower by 2020, the equivalent of £2,200 per household, according to the OECD.
And by 2030, this could rise to £5,000 a year in a worst case scenario.
This is because the UK would lose unrestricted access to the Single Market and face new barriers to trade with many of the third-country markets that we currently get preferential access to via the EU.
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#Brexit would constitute a tax of £2200 per household/yr by 2020 & up to £5000 by 2030: OECD https://t.co/DHPCRDAnWW pic.twitter.com/UauKzusm33
— OECD (@OECD) April 27, 2016
Brexit ‘like a tax’
The OECD study also states that being outside the EU would damage trade, foreign direct investment and productivity.
“Leaving the EU would impose a Brexit tax on generations to come,” says OECD Secretary-General Angel Gurría. “Instead of funding public services, this tax would be a pure deadweight loss, with no economic benefit.”
“Brexit is like a tax. It is the equivalent to roughly missing out on about one month’s income within four years but then it carries on to 2030,” Gurría told BBC Radio 4’s Today programme.
If we #VoteLeave we will cut our tax bill as we will no longer have to fund over-paid and under taxed EU bureaucrats
— Vote Leave (@vote_leave) April 27, 2016
Vote Leave says OECD figures ‘implausible’
The Vote Leave campaign shot back at the OECD’s claims saying it’s forecasts failed to allow for the UK’s ability to negotiate new trade deals.
Economist and Leave campaigner Andrew Lillico told the BBC the figures were “very implausible” as they assume that the UK will not be able to secure a trade deal of any kind with the EU before 2020 or preferential deals with other countries before 2023.
“This is just absurd. One of the main reasons we would leave the EU is in order to do new trade deals with the rest of the world, with Japan, Australia and other countries,” he said.
“The fact is whether we are in or out of the EU, we will go on buying and selling goods between France, Germany, Britain and Italy because ultimately markets are not created by politicians, it is about consumers making choices,” says UKIP’s Nigel Farage.
Vote Leave was given a further boost this morning (Thursday) when a group of eight influential economists threw their weight behind the campaign, claiming prices in the UK would be 8% cheaper if we left the EU.
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I dont believe half of what these so-called experts say. The same ones who predicted the Credit crunch.. or didn't.. which everyone and his dog could see coming. I love Europe, and in fact am planning to move to France, but the EU is a corrupt ungoverned jingoistic juggernaut designed to run over anyone who is foolish enough to be in its way. Make no mistake they will force through whatever seedy schemes they are planning to all of its members, and if the UK is the only one that can see through it, at the moment, then good for us. Frankly I don't believe that anyone with any sense in Germany, France... etc wants to stay in what the EU has become, a superstate designed to poke the bear (that would be Russia). Look at Ireland who voted to leave only to have that declared "invalid" and a new (rigged) vote organized. If you care at all about the UK and it's future you'll vote out, vote to stay in and live with the consequences, and good luck with seeing a doctor, buying a house....
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@ Amwell44 I have considered very carefully this post, but I feel something needs to be said about yours. It has nothing to do with loud mouths, old chap, It is called passion..........I am passionate about my country, having served in the RAF for 12 years during the Cold War. You talk of Jingoism, do you understand the real meaning?.......North Korea is jingoistic....threatening violence in pursuit of their political ideals. I would take a bet that most of those in favour of 'Brexit', are perfectly normal people, who are passionate about their country, and DO NOT want to see it's proud history subsumed by the EU. Before she passed away, my wife and myself toured France frequently, we both loved the country, the culture, and the people.......have you ever been to France?.......you talk of Britons shouting loudly..........in all the years we spent there, I never ever heard that.....English breakfast?, any and every French hostelry, would happily construct an English breakfast.....we had many......fish and chips?......it may surprise you to learn that the French also enjoy this dish. We both spoke French fluently, and German reasonably.....I imagine there were many like us. You confuse ignorance with passion......that is the thing that ALL Brexiteers have in common, not a loud mouth,nor a desire to be ruled by the Federal States of Europe. My apologies for the length of this post, but I had to make it.
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Every year Brussels comes up with over 1600 new regulations which we have to follow. In ten year times, there will be another 16,000 regulations! Who will dare to start a new business without infrenging any of them? Such red tape will kill grow and the economy. I am French and left France due to the heavy regulations there. Now as a UK citizen, I don't want this to happen to the UK as well. I will vote to leave. Also nobody mention the other way: the EU will have to negotiate trade deals with the UK and we can impose our own rules including import taxes if we want and this should promote jobs at home/UK as it will make locally produced products more competitive.
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06 May 2016