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Any Brexit deal will hit UK economy - government paper | Any Brexit deal will hit UK economy - government paper |
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The UK economy will grow more slowly outside the European Union, no matter what deal is struck with Brussels, a leaked government document suggests. | The UK economy will grow more slowly outside the European Union, no matter what deal is struck with Brussels, a leaked government document suggests. |
The BuzzFeed News website reports the Whitehall analysis found growth over the next 15 years could be up to 8% lower than if the UK stayed in the EU. | The BuzzFeed News website reports the Whitehall analysis found growth over the next 15 years could be up to 8% lower than if the UK stayed in the EU. |
The document is said to look at the likely impact of different scenarios. | The document is said to look at the likely impact of different scenarios. |
Government sources say the UK will not be worse off, and its preferred bespoke trade deal option was not analysed. | Government sources say the UK will not be worse off, and its preferred bespoke trade deal option was not analysed. |
Meanwhile, the international trade secretary Liam Fox has said fellow Tory Eurosceptics must now accept that they will not achieve their vision of Brexit. | |
Speaking to the Sun newspaper, Mr Fox said: "I know there are always disappointed individuals but they're going to have to live with disappointment." | Speaking to the Sun newspaper, Mr Fox said: "I know there are always disappointed individuals but they're going to have to live with disappointment." |
Chancellor Philip Hammond last week suggested the UK and EU economies could only move "very modestly" apart after Brexit. | Chancellor Philip Hammond last week suggested the UK and EU economies could only move "very modestly" apart after Brexit. |
His remarks sparked outrage from backers of Leave and reports that the prime minister was struggling to keep her party together. | His remarks sparked outrage from backers of Leave and reports that the prime minister was struggling to keep her party together. |
'Early draft' | 'Early draft' |
According to Buzzfeed, the leaked document was titled EU Exit Analysis - Cross Whitehall Briefing and drawn up for the Department for Exiting the EU. | According to Buzzfeed, the leaked document was titled EU Exit Analysis - Cross Whitehall Briefing and drawn up for the Department for Exiting the EU. |
It suggests UK economic growth would be 8% lower than current forecasts, in the years ahead, if the country left the bloc with no deal and reverted to World Trade Organisation rules. | It suggests UK economic growth would be 8% lower than current forecasts, in the years ahead, if the country left the bloc with no deal and reverted to World Trade Organisation rules. |
It says growth would be 5% lower if Britain negotiated a free trade deal and 2% lower even if the UK were to continue to adhere to the rules of the single market. | It says growth would be 5% lower if Britain negotiated a free trade deal and 2% lower even if the UK were to continue to adhere to the rules of the single market. |
The government sources point out that the document has not modelled the effect of a bespoke deal covering trade and financial services - the government's preferred scenario - and it does not attempt to anticipate the outcome of negotiations. | The government sources point out that the document has not modelled the effect of a bespoke deal covering trade and financial services - the government's preferred scenario - and it does not attempt to anticipate the outcome of negotiations. |
The BBC understands the Treasury contributed to the document but sources say it is part of a much wider range of work going on in Whitehall. | The BBC understands the Treasury contributed to the document but sources say it is part of a much wider range of work going on in Whitehall. |
The source said: "An early draft of this next stage of analysis has looked at different off-the-shelf arrangements that currently exist as well as other external estimates. | The source said: "An early draft of this next stage of analysis has looked at different off-the-shelf arrangements that currently exist as well as other external estimates. |
"It does not, however, set out or measure the details of our desired outcome - a new deep and special partnership with the EU - or predict the conclusions of the negotiations. | "It does not, however, set out or measure the details of our desired outcome - a new deep and special partnership with the EU - or predict the conclusions of the negotiations. |
"It also contains a significant number of caveats and is hugely dependant on a wide range of assumptions." | "It also contains a significant number of caveats and is hugely dependant on a wide range of assumptions." |
'Must publish' | 'Must publish' |
The chairman of the European Research Group of Conservative MPs, Jacob Rees Mogg, said that economic modelling so far had been "highly speculative" and often inaccurate. | The chairman of the European Research Group of Conservative MPs, Jacob Rees Mogg, said that economic modelling so far had been "highly speculative" and often inaccurate. |
Similar analysis carried out by the Treasury ahead of the Brexit referendum predicted large scale job losses if there was a vote to leave and had been "comprehensively wrong", he said. | Similar analysis carried out by the Treasury ahead of the Brexit referendum predicted large scale job losses if there was a vote to leave and had been "comprehensively wrong", he said. |
But Labour MP Chris Leslie, a member of the Open Britain group which campaigns against a "hard" Brexit, said ministers had to publish their analysis in full. | But Labour MP Chris Leslie, a member of the Open Britain group which campaigns against a "hard" Brexit, said ministers had to publish their analysis in full. |
On Monday the European Union set out its demands for the temporary transition period after the UK leaves in March 2019. | On Monday the European Union set out its demands for the temporary transition period after the UK leaves in March 2019. |
It wants the UK to continue to follow its rules but not be involved in making decisions. | It wants the UK to continue to follow its rules but not be involved in making decisions. |
Giving evidence to a House of Lords committee, Brexit Secretary David Davis said the UK wanted a "right to object" to new laws passed by the EU during this time. | Giving evidence to a House of Lords committee, Brexit Secretary David Davis said the UK wanted a "right to object" to new laws passed by the EU during this time. |
Meanwhile, the EU (Withdrawal) Bill is set to begin its passage through the House of Lords. | Meanwhile, the EU (Withdrawal) Bill is set to begin its passage through the House of Lords. |
The legislation cleared the Commons last month with only one government defeat but it is predicted to face a far rougher ride in the upper chamber. | The legislation cleared the Commons last month with only one government defeat but it is predicted to face a far rougher ride in the upper chamber. |