Skip to content
Monday 17 August 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE · FR
MorningWire

European business, markets and politics

FTSE 100
10,720.30
-0.28%
DAX
26,338.61
-0.38%
CAC 40
8,579.60
-0.66%
STOXX 50
6,530.45
-0.14%
  • Europe
  • Markets
  • Business
  • Economy
  • Regulation
  • Politics
  • Opinion
More
GermanyFranceEU InstitutionsCompetitionPublic AffairsBankingTechnologyEnergy
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Regulation
  • Politics
  • Opinion
  • DE
Monday 28 November 2016 1:00 am

A £60bn bill for Brexit is outweighed heavily by economic gains

By: John Longworth

Add as a preferred source on Google

The Autumn Statement provides the building blocks for Britain to be the best enterprise economy in the world.

So why then has the Office of Budget Responsibility (OBR) been so pessimistic about growth prospects saying that we will be £60billion worse off?

Well first of all, the growth forecasts outstrip all of our EU competitors, so not so shabby!

However, the OBR can only project forward on the basis of what it knows within the constraint of its economic models.

Read More: Pre-Brexit trade surge has stalled

As Lord King, the former Governor of the Bank of England pointed out consistently in his book on the financial crisis, economists are hopeless at forecasting macro economics.

They are constrained by models made up of all sorts of assumptions which are often off bean or out of date and the data that input is just as liable to error, "garbage in, garbage out" , especially when "group think" applies. Macro economics is a social/ political science, not a physical science and the biggest error is to think it is.

In fairness to the OBR, they can also, only work with what they know.

Read More: All EU rules should face sunset clause after Brexit says Longworth

The fact that the Government has not yet confirmed that the end result of Brexit will be Britain leaving the Customs Union and the so called "Single Market" more accurately the "Internal Market" affects their predictions.

Once it is clear that we will be liberated from these protectionist bodies and able embrace free market trade with world and crystallise the benefits of Brexit the economy will boom and the forecasts should improve considerably.

The removal of EU tariffs on British imports is worth up to 4% of extra GDP, deregulation of just 10% of EU regulations, 0.7% on GDP, the net contribution to the EU, 0.5% of GDP, and the lower value of sterling will boost export.

Business tax cuts and signature ready trade deals around the world will provide a further boost. On top of this the EU will eventually seek a free trade deal with the UK. The future is bright.

Read More: The BCC has finally found someone to replace John Longworth

But let us assume for a moment the OBR is correct. What price freedom – £60bn amounts to just six years net contribution to the EU or six years of overseas aid money, or three years of the two combined! What does it profit a nation to be a little more wealthy and to sell its soul?

Our forbearers paid many, many times more in treasure and blood not to be ruled by a foreign power or to have a foreign court dictate to us and to have control of our own affairs. The price of liberty is incalculable.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business
  • Politics

Trending Articles

  • Nanochon Receives Regulatory Approval from Panamá’s Ministry of Health to Initiate First-in-Human Clinical Study of Chondrograft™

  • Analysis: What would Todd Boehly and Mark Walter stake sales mean for Chelsea?

  • We take a food and drink Odyssey through the Square Mile

  • Paramount-Warner Bros deal faces ‘sufficient competition’, says CMA

  • Watchdog takes aim at lawyers blaming juniors for AI blunders

More from Morning Wire

  • OBR misery makes tax rises inevitable

    Opinion
    Treasury Department building with government bonds signage, representing financial management and bond issuance responsibi...
  • Andy Burnham is on course to rack up the second highest debt interest bill on record

    Opinion
    UK National Debt Clock showing £3 trillion, with Big Ben and the Union Jack in the background.
  • Singapore on Thames or the Sick Man of Europe?: The Economics of Brexit Ten Years from the Referendum 

    Opinion
    UK-EU Brexit negotiations meeting with officials discussing trade agreements and policy impacts in a formal conference room
  • The devastating prognosis for the UK’s public finances

    Economic News/Analysis
    Dramatic cloud formation over Westminster, capturing a striking skyline with iconic landmarks under a moody sky.
  • Pension pressure to help swell UK debt to three times size of economy

    Economics
    Two older women exercising at an outdoor gym in sunshine
  • Government debt repayment ‘could rise to half’ of total taxes

    Economics
    OBR chiefs told the Treasury Select Committee that a higher tax burden could stifle growth.
  • Warning for John Healey as key fiscal target missed

    Economics
    Labour MP John Healey in a professional headshot, likely for news or political profile.
  • The seven growth tests every Budget must pass

    Opinion
    Chancellor holding iconic red budget box outside Downing Street, symbolizing UKs annual budget announcement
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • EU Institutions
  • Europe

Business

  • Markets
  • Business
  • Economy
  • Regulation
  • Competition
  • Public Affairs

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook