Brexit ‘has cost £80bn already’

TURMOIL over Brexit is costing the country £800m a week, a top Bank of England official claims.

The economy is 2pc smaller than it would be if we had voted to stay in the European Union, Monetary Policy Committee member Gertjan Vlieghe said.

The Belgian-born economist, who helps the bank set interest rates, said this means the country is £40bn a year worse off, or more than £80bn, since the referendum was held in June 2016. He suggested the problem is growing as next month’s Brexit deadline looms with no clear solution in sight.

Vlieghe said: ‘As we approach the deadline without a clear way forward, concerns have intensified and investment has weakened further.’

He said interest rates may need to be cut to support the economy if Britain leaves without a deal.

It came as the head of the International Monetary Fund, Christine Lagarde, warned at a speech in Munich that high unemployment risks damaging the eurozone.

she said in Italy, Greece and spain unemployment is as high as 20pc – and for young people, it is more than 30pc. Lagarde said: ‘In many southern euro-area countries unemployment is far too high.’