Economic Risk of Brexit

On Monday the Prime Minister came to Haywards Heath to speak about the EU referendum. 

He set out the terms of the choice facing the British people next Thursday, 23rd June.

This is, rightly, a decision for the public, but the Prime Minister believes it is in our national interest to remain in the EU - and that is my view, too.

Inside the EU, we are part of the world’s largest trading bloc but outside the Eurozone and the Schengen border-free area, so still able to maintain our border controls and keep our currency.

We have had the fastest growth of any major economy in the world, creating more than two million jobs since 2010.

But were we to leave, these economic gains would be put at serious risk.

Nearly half our exports go to the EU.

Almost all independent economic experts agree that it is likely that we would be permanently poorer if we left than if we remain.

And the short term impact of voting to leave would be to cause a serious economic shock and force a recession upon the country.

That’s why successful local businesses, including Rolls Royce Motor Cars at Goodwood and Tesla Engineering in Storrington, believe we should remain in the EU.

It is also becoming increasingly clear that leaving could affect our public services as well.

The Institute for Fiscal Studies has warned that a recession would leave the government with a £40 billion black hole.

The Chancellor, supported by his Labour predecessor Alistair Darling, has explained how this shortfall would have to be met: by an emergency budget of tax rises and spending cuts.

The basic rate of income tax could have to be raised by 2p, the higher rate by 3p, and inheritance tax increased too, while spending on public services would have to be cut by £30 billion.

The Government would not be able to afford to protect pensions, the NHS and defence from the economic consequences of a vote to leave the EU.

Since 2010, the Government has taken the tough decisions necessary to repair the economic damage caused by the financial crisis.

I simply don’t believe it is in the national interest, or in the interests of people in West Sussex, to put the economy at risk.

That is why I will be campaigning every day from now until 23rd June to remain in the EU.

Nick Herbert