Chancellor George Osborne has stated that the EU exit will cause severe damage to the UK economy and make it ‘permanently poorer’.
Analysis by the Treasury shows that by 2030, UK national income could be 6% smaller, which equates to £4,300 a year per household.
The report, which is due to be published today, is all about facts and “steps away from the rhetoric.”
However, pro-exit voters are striking back against these claims, calling them “erroneous”, with Conservative MP and Out supporter, John Redwood, saying these warnings were “completely absurd”.
Mr Redwood added: “This is a Treasury which failed to forecast the huge damage membership of the European Exchange Rate Mechanism inflicted on us and they were always very keen to join us and it gave us a huge recession. They failed to forecast the damage to the UK of the Eurozone crisis of 2011.”
The Chancellor defended the reports, saying that the findings “could not be clearer” and making the UK permanently poorer is “a fact everyone should think about.” He stressed that “it would be the poorest” that would be affected the most where individuals’ jobs are dependent on car plants and steel making factories.
He added: “If you look at the evidence and what the rest of the world is telling Britain and they are very, very clear: we would be permanently poorer outside the EU, let alone the short-term economic shock.”
The report was dismissed instantly by the Vote leave group saying the reports are “erroneous pro-EU economic assessment published by the government over the last 40 years.”