UK Treasury Accused of Undermining Brexit after Leaking ‘Duff’ Report

Dan Kitwood/Getty Images

Brexit Secretary David Davis has accused the UK Treasury of trying to “undermine” the government after a leaked report claimed Britain would lose £66 billion in tax revenues if it leaves the European Single Market.

Mr Davis warned the leak was part of a “succession of treasury briefings that are damaging negotiations”, implying that pro-Remain civil servants may be trying to undermine Britain’s negotiating line as it prepares for talks to leave the European Union (EU).

His warning comes after Treasury papers were leaked suggesting Britain’s national income could fall by as much as 9.5 per cent if the UK leaves the Single Market. The figures are based on forecasts by former Chancellor George Osborne, a staunch Remain supporter who was sacked by Theresa May when she became Prime Minister.

One senior Conservative source told the Mail: “The leaking of this document was an incredibly unpatriotic thing to do. This is a negotiation.

“It does not serve Britain’s national interest to put into the public domain information which the countries which we are negotiating with could seek to use against us.”

Conservative MP Jacob Rees-Mogg also condemned the leak, saying: “The Treasury is undermining the Government’s own negotiating position – it’s really serious that the Treasury is behaving like this, and there should be an inquiry into its abuse of its position.”

“It is a bogus report. It is a duff report,” he added.

Fellow Conservative MP and former Cabinet minister John Redwood added: “Don’t the Treasury know the referendum debate is over?

“With or without a special deal with the EU the UK will have good access to the EU’s internal market.

“These numbers are bad economics and even worse politics. The UK needs to show a united face for the discussions with the rest of the EU.”