Brexit hit UK growth by £29bn

According to a study by senior Bank of England official Jonathan Haskel, the UK has suffered a loss of business investment worth £29bn since the Brexit referendum of 2016, equivalent to £1,000 per household.

Haskel, who is an external member of the bank’s monetary policy committee, stated that private sector investment halted immediately after the referendum, leaving a gap in productivity that has resulted in permanent damage to the economy.

Haskel’s findings could add to existing concerns over Brexit and the impact that the UK’s departure from the EU single market and customs union has had on the country. Haskel’s study approaches the calculation using business investment as the measure, rather than trade, and reaches a similar conclusion to other reports that focus on the loss of national income or GDP.

According to the study, the productivity penalty amounts to approximately 1.3% of GDP, a number that is expected to rise to 2.8% by 2026, if the current trend continues. The study’s findings were debated at a cross-party summit last week, which brought together leading leavers and remainers to discuss the country’s economic struggles post-Brexit.