While the government is trying to keep the public in the dark about the true impact of a no-deal Brexit, according to the TUC, a new report sets out the devastating cost that crashing out of the EU would have on jobs, workers rights and livelihoods.
It also reveals the damage a no-deal would cause to the public services and communities.
TUC general secretary Francis O’Grady has warned: ‘This government is deliberately keeping people in the dark about the true impact of no deal’.
The fall-out would be felt for generations to come, hitting our jobs, livelihoods and rights at work. Also putting at risk peace in Northern Ireland.
A no-deal is not a clean break and it would jam the gears of government for years to come. It would stop us rebuilding our public services and communities and repairing the damage austerity has caused.
The main points in the report include:
* a no-deal Brexit will negatively impact UK economy in the long-term by anywhere up to ten per cent. Immediately GDP could be affected by up to two per cent. Any reduction of this scale on the size of the economy will have significant impacts for jobs, wages and available funding for public services.
* The immediate cost to the public finances of no deal could be up to £90 billion.
* The government’s analysis projects an increase in net public borrowing of between £96bn and £141bn by 2035.
* Productivity is also likely to decrease in the long term by around one per cent.
* Foreign direct investment in the UK is likely to reduce in the long term by around 24 per cent and overall business investment by 3.5 per cent.
* There is potential for up to 482,000 job losses and a potential loss of £4bn in income tax and NI receipts.
* Real wages will suffer and are likely to fall [up to ten per cent in the governments analysis] and
* Those on the lowest incomes are likely to be hit the hardest.
No wonder our local authorities are too frightened to publish a local impact assessment on Brexit and what it would really mean for the local economy and local communities in Lincolnshire.
Rodney Sadd
Tu delegate for the South Holland & The Deeping’s CLP
