Hard Brexit ‘could add 7% to economy’

BRITAIN’S economy could be boosted by 7 per cent if it makes a clean break with EU red tape, according to a study published today.

The Institute for Economic Affairs urged Theresa May not to ‘box the UK into a corner’ by accepting a common rule book with the EU – as proposed in her Chequers plan.

The free market thinktank says ‘regulatory autonomy’ holds the key to the UK’s post-Brexit success, as it would free British business from the dead hand of EU red tape.

The study suggests that if the UK and new trade partners in the Pacific agree a bonfire of red tape on trade, annual GDP could be boosted by 7.25 per cent over the next 15 years.

Shanker Singham, director of the IEA’s international trade and competition unit, said: ‘Pro-competitive regulation is essential for the UK economy, and the vital first step is regulatory autonomy.

‘Unfortunately, the Chequers deal as it is would prevent the UK creating its own regulation and signing advanced trade deals.

‘It would badly hinder economic growth.

‘In order for the UK to be able to seize the benefits of Brexit, which are in the execution of its independent trade policy and improving its own regulatory system, it is crucial it have regulatory autonomy so that it can be a credible trading partner.’

Mrs May yesterday insisted a common rule book would not hamper new trade deals as there was no public demand to cut standards.