Ian McCafferty, who is a member of the Bank of England’s Monetary Policy Committee, said he would be “very surprised” if the UK did not find a deal that was worse than securing one.
The former Chief Economic Adviser to the Confederation of British Industry said Theresa May’s launch of the Great Repeal Bill – which would bring EU laws onto the UK’s books – would damage the economy if “rushed”.
“I’d be very surprised if we could find no deal that was worse than a deal,” he said. “There is so much of our national life, all the way through from our agricultural policy, through fishing, through consumer protection, all sorts of thing that is linked to EU bodies, EU institutions, as well as EU law.
Ian McCafferty warned there could be "disruption" to the UK economy for years
I’d be very surprised if we could find no deal that was worse than a deal
“Now we could transfer the law back through the Repeal Bill but we would then have to set up quite a number of new civil service bodies.
“Were we to have to do that in a rush because it suddenly became apparent that no deal was available, that both sides had simply walked out in a huff, then I think we would find quite a lot of disruption to the UK economy, which would probably bring us into a period of a couple of years in which the economy would perform really quite badly.
“That’s independent of what’s going on in terms of trade, investment and some of the broader issues.
“But simply disentangling ourselves, it’s a hugely complicated divorce and therefore talking it through rationally and getting some sort of agreement on all of these issues I think would better.”
Brexit: Results of how the UK voted Mon, March 20, 2017
Much of the North East of the United Kingdom voted to leave the European Union including Sunderland, Gateshead, Darlington, Durham, Hartlepool, Middlesbrough, Stockton, Redcar and Cleveland, North Tyneside and South Tyneside, and Northumberland
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GREAT YARMOUTH: The town of Great Yarmouth on the East Coast of England voted by 72% to leave the European Union.
Theresa May will chair a meeting of the Cabinet on Wednesday morning as the letter formally invoking the Article 50 withdrawal process is dispatched to Brussels.
Signed personally by the Prime Minister – a so-called "wet signature" in Civil Service jargon – the letter will be delivered to European Council president Donald Tusk by the British ambassador to the EU, Sir Tim Farrow, at about 12.30pm UK time.
At around the same time, Mrs May will rise in the House of Commons to make a statement to MPs confirming the two-year countdown to Britain's departure from the European Union is finally under way.