Budget: Lib Dems call for customs union to end cost-of-living "permacrisis" 

The UK is losing £250m a day in lost tax revenue due to the economic impact of Brexit, House of Commons Library analysis commissioned by the Liberal Democrats has revealed, as the party called on the Chancellor to deliver a new Customs Union with the EU to tackle the cost-of-living permacrisis.

Analysis of those figures by the House of Commons Library now suggests without those blows to GDP, the Treasury could have benefitted per year to the tune of £90 billion more in tax revenue in 2024/25. This is assuming the economic damage of Brexit amounted to the higher estimate of 8% of GDP. Even under the lower estimate of 6%, the annual hit to tax revenues would be around £65 billion.

The analysis also estimates that the average Brit is thousands of pounds worse off due to the Conservative Brexit deal. The hit to UK GDP per capita from Brexit is between £2,700 and £3,700.

Ahead of the Budget, Susan Murray, Liberal Democrat Scottish Affairs spokesperson said:

“The economy is at a standstill. Despite years of promises from the Conservatives and now Labour to kickstart growth and clamp down on crushing household bills, the British people are facing a cost-of-living permacrisis and yet more betrayals from those in charge.

"The Government must not load struggling households or high streets with yet more tax rises to pay for its own mistakes. Rachel Reeves must take bold action to slash the cost of living, rescue our high streets, and start fixing the mess left by Brexit – by negotiating a new Customs Union with the EU, to grow our economy and bring in tens of billions for the Exchequer.

"Anything else would be tantamount to a dereliction of duty.”