Brexit supporters reacted with fury today after a Treasury report outlining the ‘worst case’ scenario after leaving the EU was leaked.
Draft papers, intended to be circulated among Cabinet ministers, warned if Britain crashes out of the single market without a deal the economy could shrink by 9.5 per cent and tax revenues would plunge £66billion.
The figures are based on the same forecasts used by George Osborne to predict an immediate recession as he led Project Fear for the Remain campaign.
No 10 played down the figures today, pointing out they were old and insisting Theresa May was focused on getting a ‘bespoke’ deal for Britain – repeatedly refusing to confirm the Treasury forecasts were still the basis for Government policy.
As the new row over Brexit exploded today major business group the CBI lost digger firm JCB, one of its biggest members, over claims it was making apocalyptic warnings over quitting the EU.
Leading Vote Leave campaigner Steve Baker told MailOnline nobody would believe the ‘discredited’ Remain propaganda while Tory MP Jacob Rees-Mogg slammed the Treasury for its ‘bogus report’
Tory MP Steve Baker told MailOnline: ‘No one will believe the now discredited propaganda of the defunct Remain campaign.
‘Those who want the best for the people of our country must now focus in good faith on making our exit work for everyone.’
Bernard Jenkin, a leading Brexit campaigner, added: ‘Some still seem to be trying to run Project Fear.
‘They are grossly underestimating and undermining the UK position in the negotiations.
‘They should produce a paper on the consts of staying in the EU internal market.’
Jacob Rees-Mogg, a Conservative member of the Commons Treasury committee, said it was a ‘bogus report’.
He told the BBC: ‘The ”leaked” Treasury paper is not a leaked paper – it’s a very bad, basically dishonest paper it put together during the Brexit campaign.
‘It’s a completely stupid paper. The Treasury is undermining the Government’s own negotiating position – it’s really serious.
‘There should be an inquiry. It’s abuse of its position.’
Richard Tice, Chair of Leave Means Leave said: ‘The leak from the Treasury is nothing more than a continuation of the Project Fear rejected by the public during the referendum campaign and condemned at the time.
‘This document was commissioned by the previous Chancellor during the referendum campaign – the same Chancellor who said that a vote to leave the EU would force a punishment budget with tax rises and spending cuts.
David Davis, yesterday told MPs ‘There are no downsides – only a considerable upside’ to the impact of Brexit on the economy while Liam Fox, also seen outside No 10 this morning, is pursuing new trade deals
The leaked paper is reportedly due to be circulated among Cabinet ministers such as Education Secretary Justine Greening, Health Secretary Jeremy Hunt and Culture Secretary Karen Bradley, pictured from left to right arriving at No 10 today
‘Project Fear claimed Brexit would put a bomb under our economy and trigger a recession, and this has not happened.
‘The leaked document is nothing but a dated piece of propaganda from a discredited former Chancellor.’
11th October 2016, Daily Mail