Pay the Brexit bills and the UK will still have £8bn left! Huge dividend for the government after ceasing all contributions to the EU
Experts have suggested the UK could reap a Brexit dividend of up to £8 billion
If Britain were to leave the EU the government would have around £13.4bn extra
Ministers suggested the programmes funded by the EU are likely to continue
By JACK DOYLE, SENIOR POLITICAL CORRESPONDENT FOR THE DAILY MAIL
8 February 2017
Britain could reap a Brexit dividend of up to £8 billion, experts suggested yesterday.
In its annual Green Budget, the Institute for Fiscal Studies warned Brexit could have a negative impact on the economy – depending on the trade deal the UK secures with Brussels.
But it also pointed towards a significant potential boost for the public finances.
It said that if Britain were to leave the EU and cease all contributions overnight, the government would have around £13.4 billion extra to spend.
Ministers have suggested many of the programmes funded by the EU – such as agriculture payments – are likely to continue in the short term.
But even after those are subtracted, ministers would still be left with around £8billion extra, the IFS suggested.
Thomas Pope, Research Economist at the IFS said: ‘There is actually one quite positive risk on the spending front.
‘The current forecasts assumes that when we stop making the EU contribution we will continue to spend all that money elsewhere in the public sector.
‘However, we could replace all the EU funding that currently takes place in the UK and still have about £8bn left over which we could use to reduce the deficit.’
During the referendum campaign, the official Vote Leave campaign suggested there would be £350 million more every week to spend once Britain left the EU.
That is the equivalent of around £18 billion a year. A dividend of £8bn would equate to around £150m a week.
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