“For someone who claims to want to give sovereignty back to the British parliament you don’t seem to have much respect for the sovereignty of this committee,” Labour’s Helen Goodman pointed out.
You can watch Helen's questioning of Dominic Cummings, Campaign Director of Vote Leave campaign in yesterday's Treasury Select Committee.
HM Treasury published this week their analysis of the long-term economic impact of EU membership and the alternatives.
This document assesses continued UK membership of the EU against the three existing alternative models:
- membership of the European Economic Area (EEA), like Norway
- a negotiated bilateral agreement, such as that between the EU and Switzerland, Turkey or Canada
- World Trade Organisation (WTO) membership without any form of specific agreement with the EU, like Russia or Brazil
The Treasury’s analysis shows that the UK would be permanently poorer if it left the EU and adopted any of these models. Productivity and GDP per person would be lower in all these alternative scenarios, as the costs would substantially outweigh any potential benefit of leaving the EU. The analysis finds that the annual loss of GDP per household under the three alternatives after 15 years would be:
- £2,600 in the case of EEA membership
- £4,300 in the case of a negotiated bilateral agreement
- £5,200 in the case of WTO membership
The negative impact on GDP would also result in substantially weaker tax receipts, significantly outweighing any potential gain from reduced financial contributions to the EU. After 15 years, even with savings from reduced contributions to the EU, receipts would be £20 billion a year lower in the central estimate of the EEA, £36 billion a year lower for the negotiated bilateral agreement and £45 billion a year lower for the WTO alternative.