Brexit will soon have cost the UK more than all of its payments to the EU over the last 47 years put together

boris johnson

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Boris Johnson

  • Brexit will soon have cost the UK more than its combined total of payments to the EU budget over the past 47 years.
  • Bloomberg Economics found the cost of the UK's vote to leave has already reached £130 billion.
  • A further £70 billion is likely to be added by the end of 2020, economist Dan Hanson found.
  • Business confidence and investment in the UK has dipped significantly since the 2016 vote.
  • Visit Business Insider's homepage for more stories.

Brexit will have cost the UK more than £200 billion in lost economic growth by the end of this year - a figure which almost eclipses the total amount the UK will have paid towards the EU budget over the past 47 years.

According to research by Bloomberg Economics, the cost of the UK's vote to leave has already reached £130 billion, with a further £70 billion likely to be added by the end of 2020.

The analysis, carried out by economist Dan Hanson, found that business uncertainty has caused the UK's economic growth to lag behind that of other G7 countries since the 2016 vote.

That means the British economy is now 3% smaller than it would have been if the UK had not voted to leave the EU.

Figures from the House of Commons library put the UK's total projected contribution towards the EU budget between 1973 and 2020 at £215 billion after adjusting for inflation.

That means the combined cost of leaving since 2016 is likely soon to eclipse the combined cost of the EU's budget payments, which were a central part of the Leave campaign's case for Brexit in the first place.

The UK is set to leave the EU on January 31 after Boris Johnson's election victory in December. But business confidence and investment has dipped, meaning annualised economic growth has fallen from 2% to 1%.

"As the U.K. comes to terms with its new trading relationship with the EU and grapples with the productivity challenge that has hindered growth since the financial crisis, the annual cost of Brexit is likely to keep increasing," Hanson told Bloomberg.

Our Brexit Insider Facebook group is the best place for up-to-date news and analysis about Britain's departure from the EU, direct from Business Insider's political reporters. Join here.

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