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OECD warns of 'Brexit tax' if UK leaves EU

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By Euronews
OECD warns of 'Brexit tax' if UK leaves EU

<ul> <li><strong>British voters face ‘Brexit tax’ if they leave EU</strong></li> <li><strong><span class="caps">OECD</span> says ‘no upside’ for UK in a Brexit</strong></li> <li><strong>Leave camp says <span class="caps">OECD</span> report is unreliable</strong></li> </ul> <p>It will cost the average British household the equivalent of a month’s salary of around 2,800 euros by 2020 if they vote to leave the European Union in a June referendum.</p> <p>That’s the warning from the the west’s leading economics thinktank, the Organisation for Economic Cooperation and Development. (<span class="caps">OECD</span>).</p> <p>It was made by its chief Angel Gurria during a lecture at the London School of Economics.</p> <p>“Brexit would, rather like a tax, hit the wellbeing and the pockets of UK citizens. Unlike most taxes, however, this one will not finance the provision of public services or close the fiscal gap. The ‘Brexit tax’ would be a pure deadweight loss,” said Gurria.</p> <p>Echoing the assessment made by the Treasury earlier this month, the chief of the 34-nation <span class="caps">OECD</span> said the costs of exit would increase over time. “By 2030, in a central scenario <span class="caps">GDP</span> would be over five percent lower than otherwise,” it said, “with the cost of Brexit equivalent to £2,200 per household (in today’s prices).” The Treasury predicted that the economy would be six percent smaller by 2030.</p> <blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr"><a href="https://twitter.com/hashtag/Brexit?src=hash">#Brexit</a> would constitute a tax of £2200 per household/yr by 2020 & up to £5000 by 2030: <span class="caps">OECD</span> <a href="https://t.co/DHPCRDAnWW">https://t.co/DHPCRDAnWW</a> <a href="https://t.co/UauKzusm33">pic.twitter.com/UauKzusm33</a></p>— <span class="caps">OECD</span> (@OECD) <a href="https://twitter.com/OECD/status/725265715750703104">April 27, 2016</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <p>Gurria also said those campaigning to leave the EU were “delusional” over Britain’s trading prospects which he said would suffer from less access to the bloc’s single market.</p> <p>“Our conclusion is unequivocal. The UK is much stronger as a part of Europe and Europe is much stronger with the UK as a driving force. There is no upside for the UK in Brexit.”</p> <p>The <span class="caps">OECD</span>’s entry into the debate has not been welcomed by the <a href="http://www.telegraph.co.uk/business/2016/04/27/brexit-what-the-oecd-leaves-out/">Out campaign</a>. They have challenged the organisation’s credibility, recalling how it had once suggested Britain might benefit from joining the euro currency. </p> <blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">What do the <span class="caps">IMF</span>, <span class="caps">OECD</span>, and HM Treasury have in common? They argued for the UK to join the <span class="caps">ERM</span> (failure) and the Euro € (failure). <a href="https://twitter.com/hashtag/VoteLeave?src=hash">#VoteLeave</a></p>— Vote Leave Haringey (@HaringeyLeave) <a href="https://twitter.com/HaringeyLeave/status/725453001318608896">April 27, 2016</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <p>They have also accused the organisation of making “improbable assumptions” that a post-Brexit Britain would initially have less favourable trading ties with the EU than South Korea or Mexico.</p> <blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr"><span class="caps">IMF</span> Chief Economist shows that the <span class="caps">OECD</span>, EU and Economist Intelligence Unit all got their forecasts wrong. The <span class="caps">IMF</span> was even less accurate.</p>— Peter Griffiths (@PGriffithsUKIP) <a href="https://twitter.com/PGriffithsUKIP/status/725432283029708801">April 27, 2016</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <p>British economists who support leaving the EU will announce their results shortly.</p> <script id="infogram_0_brexit_opinion_polls" title="BREXIT OPINION POLLS" src="//e.infogr.am/js/embed.js?i35" type="text/javascript"></script>