Former chancellor Jeremy Hunt has hit out at Brexiteers who inflated the economic benefits of the UK’s departure from the European Union.
Mr Hunt, who voted Remain in 2016, criticised what he described as some of the “more hyperbolic claims” of some Brexit’s backers – who included former Tory PM Boris Johnson.
But in a foreword to a new report, Mr Hunt also said he believed “many claims” about the negative impact of Brexit on the economy “were overly exaggerated” and the UK’s departure had “much less impact on British exports to the EU”.
The report, by the Policy Exchange think tank, said that analysis of Brexit’s impact had only looked at the fall in the volume of exports, and had not considered its value. As an example it said while the number of vehicle exports are down 28 per cent compared with 2019, the value of exports has only decreased by 2 per cent in the same period.
Mr Hunt called on the official Office for Budget Responsibility (OBR) to scrutinise the findings when they next update their models.
But experts have urged caution on the report, saying it was cherry picking data.
Trade expert David Henig said it was “very selective picking of a few examples to try to make a broader case in contradiction to all of the serious studies”. He added: “The aggregate numbers have been clear on the trade impacts, which are as the economics predicts. This study doesn’t change that.”
The OBR, the UK’s independent financial watchdog, has warned that Brexit is on course to cut UK trade by 15 per cent.
Naomi Smith, chief executive of Best for Britain which campaigns for closer EU-UK ties said: “The former chancellor might quibble about the extent of the damage his party caused to British businesses but no one credible now argues that Brexit has been anything but a disaster, certainly not those who export.
“What matters now is fixing the problems Brexit has created and independent research shows that greater alignment with the EU can boost the UK economy by up to 2.2%.”
Sir Nick Harvey, a former minister in the coalition government and the chief executive of the pro-EU European Movement UK group said: “This report from Policy Exchange does exactly what it accuses others of doing: trying to relitigate the Brexit debate.
“Their narrow focus on trade, particularly the distinction they draw between volume and value of trade, overlooks the wider economic damage of the catastrophic 2016 decision, the hiatus and chaos which followed, and the disastrous investment and growth impacts which have resulted.
“Like all their reports, this is worth serious attention and of course everyone wants to see high value exports. But volume also matters – it is a measure of economic activity, with consequent social impacts.
“There is a whopping hole in the British economy as a result of Brexit, as many studies have shown. Glorious opportunities around the world have not opened up in the ways which were promised. Given that there is no possibility of rejoining the single market any time soon, it is important for the Government in its reset with the EU to focus on friction at our borders.”
Meanwhile, the Government is being urged to push for a new settlement with the EU to help businesses expand and drive growth, in a call from the British Chambers of Commerce.
Director general Shevaun Haviland will also highlight the importance of strengthening UK/US trading relations.