Hammond reveals Brexit may make UK poorer after Mizen Group warn of potential impact on construction
The Chancellor Philip Hammond this morning revealed that new government economic analysis suggests that the UK's economy will suffer as a result of any form of Brexit. The property sector is one area that may face particular difficulty and Mizen Group argued in their recent contribution to The Parliamentary Review that "EU migrants are necessary for the British construction industry to support the maintenance and expansion of economic activity."
The analysis that was released in an 83-page document today, looks at the potential impact of various potential situations that the UK could find itself in after leaving the EU. Under current plans, the report suggested that the UK economy would be 3.9 per cent smaller 15 years into the future than it would be were the UK to remain in the EU. The report does not look into the current deal that May announced this month, but instead at agreed cabinet proposals and May's original Chequers plan.
- Hammond says that economic analysis shows that Brexit could make Britain worse off
- Mizen Group also warn of the impact of Brexit on the construction sector
The report suggested that a no deal Brexit would result in the largest impact on future economic growth, with GDP projected to be 9.3 per cent lower in 15 years time than it would be in a no Brexit scenario. A free trade agreement was projected as 6.7 per cent smaller. During Prime Minister's Questions today May responded to questions about the report by saying that "our deal is the best deal available".
While Hammond was criticised by some Tory MPs, including former Brexit secretary David Davis, Hammond maintained that the UK remaining in the EU was not politically viable. Liz Kendall pressed the prime minister on the report stating that she had not seen an MP pursue a policy in the past that they knew would make the UK worse off. Tory MP Bill Cash said Hammond had ignored the potential opportunities that Brexit creates and queried "what about the trade deals which could give us the most enormous opportunities throughout the world?"
Experienced SME Mizen Group, who have been building homes in the UK for over 30 years argued that Brexit would be damaging for the construction industry, as well as the whole UK economy. Executive Chairman Bernard Tansey explained "we fear that a number of skilled and unskilled workers from the EU may leave because of an inadequate Brexit deal and the prolonged uncertainty. Recently, we have encountered sales resistance on several of our sites and this is an issue that is not just affecting the construction industry."
Tansey explained that the uncertainty surrounding Brexit and its result was causing businesses to relocate, which will have a negative impact on the UK's economy. Rolls Royce, he used as an example, announced this year that they would have job losses of around 4,000 staff in the UK, because of the "risk of economic contraction following an unsatisfactory Brexit settlement".
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