Brexit  will cost every family £4,300

British Chancellor George Osborne

Chancellor publishes new reasons with dire consequences of leaving EU, reports Asian Lite News

George Osborne accused London Mayor Boris Johnson and Brexit supporters of ‘dishonesty’ today as he warned that we would be ‘permanently poorer’ after leaving the EU. The Chancellor launched a fresh offensive in the increasingly bitter referendum battle as he published a `Treasury assessment of the risks.’

The 200-page dossier predicts that quitting would trigger a 6 per cent slump in GDP and cost every household £4,300 a year. Unveiling the document flanked by Cabinet colleagues Liz Truss, Amber Rudd and Stephen Crabb, Mr Osborne denied criticism about ‘scaremongering’.

British Chancellor George Osborne
British Chancellor George Osborne

He insisted officials had carried out a ‘sober and serious’ analysis of Britain’s prospects outside the EU. “This is a sober and serious look at the costs and benefits of remaining in the EU or leaving it – not just for Britain but for the individual families of Britain,” he said at the event in Bristol.

Mr Osborne said that while this report dealt with the long-term impacts of Brexit, the government will be producing a study on the short-term fallout later in the campaign.

Interviewed on BBC Radio 4’s Today programme earlier, Mr Osborne said that the analysis by civil servants ‘stepped away from the rhetoric’ and ‘set out the facts’. Singling out Mr Johnson for criticism, he branded those who claimed that the UK could leave and negotiate better terms with the rest of the EU are ‘economically illiterate’.

“You completely misunderstand Britain’s negotiating position if you think we can get a better deal than France of Germany,” he was quoted as saying.  Citing the Canada model referred by Boris Johnson, he was reported to have said, ”The problem with the Canadian model is that you don’t have access for your services industry – that’s 80 per cent of the British economy, 80 per cent of the jobs in the British economy.”

Mr Osborne went on to say that it is not right to say that we will get all the benefits of EU, if we go out of EU. Mr Osborne also insisted the poorest would be the hardest hit by Brexit. He said the country would not be ‘all in this together’ after leaving. “The richest in our country would go on being rich,’ he was quoted as saying.  “It would be the poorest.”

The document, published by the Treasury later, has been presented as an impartial assessment of the financial implications of leaving the EU. However it sparked immediate accusations from the Leave camp that it is government propaganda designed to scare the public.

Senior Conservative backbencher Bernard Jenkin jibed that Mr Osborne had previously pledged to eradicate the deficit by the general election, but missed the goal. He also referred to the Treasury’s decision to enter the European Exchange Rate Mechanism (ERM) – which Britain crashed out of in 1992.

Former minister and Tory MP John Redwood is reported to have said it was ‘absurd’ and ‘worthless’ to make an economic forecast 15 years into the future. “This is a Treasury which had to make huge changes to its forecast for the next two years just between November and March because it decided its November forecast was completely wrong.


‘This is a Treasury which failed to forecast the huge damage membership of the Exchange Rate Mechanism inflicted on us and they were always very keen to join and it gave us a huge recession. They failed to forecast the damage to the UK from the Eurozone crisis of 2011.’

Last week Mr Osborne also warned that Brexit could lead to a rise in mortgage rates due to uncertainty about what would happen after a vote to leave the EU.

However responding to his remarks, Chris Grayling, the Leader of the House of Commons, pointed out that David Cameron said only a few weeks ago that Britain could succeed outside the EU, although he believed the country would be better off staying in. “It can’t be logical now for the Treasury to claim doomsday and disaster would follow if we leave,” he was quoted as saying.