Brexit worse than Covid! Project Fear returns as damning report hits out at EU withdrawal – Daily Express

UK companies have lost hundreds of billions of pounds to Covid and an equal amount to Brexit, but the tally from the UK leaving the European Union is now rising faster, according to a report by The Centre for Economics and Business Research. This found numerous coronavirus lockdowns that had inflicted huge damage on businesses throughout the UK had cost them a staggering 251billion by March 2021. It revealed the value of the goods and services produced by the country's under-pressure economy had plunged by 250billion more than it otherwise would have been.

The report cited figures from business insurer Simply Business which said Covid cost small businesses alone an estimated 126.6billion. while a report from the Government in November revealed the country lost almost 365 billion in GDP from Covid overall.

But David Jinks, head of consumer research at delivery firm ParcelHero, said: British businesses have had a torrid few years.

Brexit or Covid, which has been the heavier burden for them to bear?

"The shocking answer is that the entirely avoidable Brexit crisis has had as much of an impact on UK businesses as the unforeseeable Covid-19 tragedy, and its costs are still rising.

No one could have foreseen the arrival of the pandemic and there was little that could have been done to shield UK businesses in advance.

"However, this is certainly not the case for the impact of Brexit on UK businesses."

Before the UK formally left the EU on January 1, 2021, a report from Bloomberg Economics revealed that by the end of the previous year, the economic cost of Brexit had already surged past 200billion in lost revenues for UK companies.

The report had calculated the UK economy had shrunk by three percent than it otherwise would have been.

READ MORE:French open eyes to EU shambles

Also since Brexit, the UK Trade Policy Observatory claimed the loss of trade with the EU has cost UK businesses a further 44billion.

Mr Jinks said: That breaks down to 32.5billion lost in potential imports to the UK and 11billion in exports to the EU."

Further analysis showed the UK Government spent an additional 8.1billion on preparing for Brexit and the end of the transition period in December 2021, according to the Institute for Government.

This means the combined costs of Brexit and the pandemic both equal around 250billion but longer term, it has been claimed the UK leaving the EU could end up costing even more than Covid.

DON'T MISSBrexit: India deal could dwarf US pact economy to beat 9TN bloc[REPORT]EU walks away! Sefcovic 'frustrated'[LATEST]Northern Ireland Protocol hated by Unionist new poll finds[POLL]

Thomas Sampson, Associate Professor at the London School of Economics, said: When measured in terms of their impact on the present value of UK GDP, the Brexit shock is forecast to be two to three times greater than the impact of Covid-19.

"Moreover, the Office for Budget Responsibility (OBR) told the BBC last October that leaving the EU would reduce our long-run GDP by around four percent.

It has been reported the impact from the UK pandemic will only see GDP output fall by just two percent.

The latest report from Government Business Insights showed that in December, two-thirds of UK firms experienced challenges with exporting and nearly eight in ten with importing.

Mr Jinks added: This has had a knock-on effect on transport and logistics companies.

"A staggering 36.7 percent of transport and logistics companies either closed, paused trading entirely or continued trading only partially in December."

Go here to see the original:

Brexit worse than Covid! Project Fear returns as damning report hits out at EU withdrawal - Daily Express