The UK economy was 5.5% smaller in June this year than it would have been if the country had remained a member of the European Union, a slowdown that has led to higher taxes, according to a report from the UK Ideas Lab. Center for European Reform (CER).
The think tank, which regularly publishes analyzes of the impact of Brexit since 2018, estimates the level of investment in the UK is 11% lower than it would be and goods trade 7% lower.
However, the level of exchange of services remained in a range similar to what would have been recorded if the UK had continued to be part of the bloc, says the report, which was prepared by CER Deputy Director John Springford.
“The impact of Brexit has inevitably led to higher taxes, as slower growth requires higher taxes to fund public services,” Springford said in a statement.
According to its economic model, which simulates the evolution of the country’s financial resources if secession from the European Union does not occur, the UK’s annual tax revenue would be about 40 billion pounds sterling (45.3 billion euros).
The report’s author maintains that “there is little reason to believe that the long-term scars of the pandemic are greater (in the UK) than in other countries”, so he rules out that the coronavirus pandemic is significantly altering the perception of the effects of Brexit on the economy.
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