Blog: How Brexit damages businesses and livelihoods — Scottish National Party – SNP

Brexit is making us all poorer: the facts

Higher prices worsening the cost of living

Immediately following the result of the 2016 Brexit referendum, the value of pound sterling fell by 12%, which led to higher inflation from the higher price of imports.

Unlike Scotland, the UK as a whole has a negative trade balance in goods – which means it imports more than it exports.

When imports get more expensive, so do basic items, like food or clothing.

This inflation alone has increased the cost of living by £870 per year in the UK.

Big long-term damage to the UK economy

Recent OECD figures showed that the UK is heading for the lowest growth in the entire G20, apart from heavily-sanctioned Russia.

And IMF figures recently confirmed the UK’s sluggish economy – stating that the UK has the lowest growth in the G7.

For all the economic damage caused by the Covid pandemic, the UK government’s own financial body – the OBR – said that the long-term damage of Brexit will be twice as bad.

Lower productivity and lower wages

Recent statistics already showed that the UK now has the slowest wage growth since records began – and with a high level of inflation, this means a real-terms pay cut for most people.

Brexit adds an additional impact – as the OBR forecasts the UK’s productivity will be 4% lower compared to if we hadn’t left the EU.

This then results in falling wages. The UK real wages are expected to be 1.8% lower – a loss of £470 per average worker every year.

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