Revealed: Brexit costing the UK £250m a day in lost tax revenue

EMBARGO: Immediate release

The UK is losing £250m a day in lost tax revenue due to the economic impact of Brexit, House of Commons Library analysis commissioned by the Liberal Democrats has revealed.

The analysis suggests Brexit has blown a black hole of £90 billion a year in the public finances.

The Liberal Democrats said it showed the government must be far bolder in fixing the damage done by Brexit, including by backing the party’s Customs Union Bill, set to be voted on in the House of Commons on 9th December.

A recent study from the National Bureau of Economic Research, a leading US-based thinktank, found that the economic damage caused by the previous Government’s Brexit deal since 2016 has kept the UK economy between 6% and 8% smaller than it could have been.

Analysis of those figures by the House of Commons Library now suggests without those blows to GDP, the Treasury could have benefitted per year to the tune of £90 billion more in tax revenue in 2024/25. This is assuming the economic damage of Brexit amounted to the higher estimate of 8% of GDP. Even under the lower estimate of 6%, the annual hit to tax revenues would be around £65 billion.

The analysis also estimates that the average Brit is thousands of pounds worse off due to the Conservative Brexit deal. The hit to UK GDP per capita from Brexit is between £2,700 and £3,700.

Liberal Democrat Leader Ed Davey said:

“The most dishonest campaign in our history said it would save us £350 million a week, but Brexit actually cost us £250 million a day in 2025.

“That is why we have the highest taxes ever, that is why we have sky-high bills, that is why we have a cost of living crisis.

“Worst of all Labour know the cost of Brexit but refuse to do anything about it. My message ahead of the Budget is clear: fix our broken relationship with Europe to end the cost of living crisis.”

ENDS

Notes to Editor: 

Please find full research details here.

Please find details on the Liberal Democrat bill to introduce a customs union bill, set to be introduced on 9 December, here.