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Reigate Liberal Democrats

So far BREXIT has cost every family £400

December 1, 2017 9:27 AM
Originally published by Spelthorne Liberal Democrats

Wasting your moneyThe highly respected Centre for Economic Performance, based at the London School of Economics, has published research that estimates the cost of BREXIT so far at £404 per household. The researchers, four top UK academics, sought to put a cash value on the impact on individuals of Brexit.

According to the research, the nearly 10% currency depreciation is responsible for an increase in inflation of 1.7% - equivalent to £404 pa or £7.74 per week - THIS IS WHAT HAS ALREADY HAPPENED.

Impact of Brexit on interest ratesThe major cause has been the increase in inflation which is the direct result of the fall in the value of the pound and the consequent increase in the costs of imported finished goods and input materials. Inflation increased from 0.4% in Sept 2016 to 3% in September 2017, much more than in other economies. The comparable figures for the EU were 0.1% to 1.5% and for the USA 0.2% to 1.9%.

Most serious academic research has predicted a long-term fall in living standards as the result of exiting the EU - but that hasn't happened yet. Even the Chancellor, in his recent budget, was forced to recognise that UK growth will now lag behind other comparable economies in Europe for the next 10 years.

We are all already paying the price of BREXIT like it or not, and this is before any consideration of what we owe the EU on leaving.

To see the full paper go to http://cep.lse.ac.uk/pubs/download/brexit11.pdf