A leaked British Treasury report has warned of “serious consequences” if the UK abandons the European Union without a trade deal.
The report, seen by The Independent, criticizes Prime Minister Theresa May’s plans for sticking to World Trade Organization (WTO) tariffs as an alternative to a comprehensive trade deal, stating it will cause a “major economic shock.”
The study warns that a hard Brexit will have the most negative long-term impact on the British economy, emphasizing that the result would be catastrophic for companies, jobs and food prices.
The document also warns that the WTO option would mean “new taxes on British trade,” indicating the UK’s privileged access to these markets would be “terminated” and that it “would take years” to strike new trade deals.
The report’s tone is deemed far stronger than that employed in the Treasury’s published analysis of Brexit’s long-term impact on the economy.
