Staggering cost of Britain’s Brexit divorce revealed – and there’s billions more to pay EU

Sir Keir Starmer has come under pressure to publish the true costs of Brexit after a minister confirmed Britain has spent ?24bn alone withdrawing from the EU – with a further ?6.4bn still to pay.

The prime minister has been urged to order an inquiry into Britain’s relationship with the bloc to assess the damage of Brexit and identify opportunities for closer cooperation in future.

As Sir Keir embarks on a much-hyped “reset” of relations with Brussels, Treasury minister Tulip Siddiq confirmed Britain has paid the EU ?23.8bn as part of its “financial settlement” agreement.

On top of the money already spent, Ms Siddiq confirmed in response to a parliamentary question that Britain will pay another estimated ?6.4bn to the bloc to settle the UK’s pre-existing financial obligations.

The staggering figure has come to light as the chancellor tries to raise funds to plug a ?22bn “black hole” in Britain’s finances, warning ministers earlier this week that there would be “difficult decisions on spending, welfare and tax” to come.

Campaigners reacted with fury after The Independent revealed the sum, calling for Sir Keir to reverse the damage done by Brexit by pursuing closer ties with Europe.

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SNP MP Stephen Gethins, who submitted the written question, said: “Brexit has been disastrous for the UK economy and broader society. It takes away rights and opportunities that my generation took for granted, makes it more difficult for businesses, and we are paying heavily for the privilege of being outside the world’s largest single market.

“There is no path to growth or economic success outside the EU, and as these figures show, we are still paying for the mistakes of a hard Tory Brexit nobody voted for.

“Given this, it astonishes me that Sir Keir is pursuing a hard Tory Brexit that deprives public services of badly needed funds at a time when Labour continue to pursue a Tory austerity agenda.”

Best for Britain chief executive Naomi Smith told The Independent: “Exiting the European Union not only cost the UK vast amounts of money, but economic growth, opportunities for young people, influence on the world stage, and much more.

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“But this government has the opportunity to reverse that downwards trend, building on a strong start to bring us closer to the EU through policies like beneficial alignment and a reciprocal youth mobility scheme.”

Deputy chief executive of campaign group the European Movement, Emma Knaggs, told The Independent: “It’s encouraging to see more data being shared about the cost of the UK’s exit from the EU. However, we remain in the dark about the full extent of the impact of leaving the EU and its repercussions on areas such as the economy, the NHS, the cost of living and UK businesses, to name just a few. We need an independent, forward-looking inquiry on the UK’s relationship with Europe to identify those opportunities and rebuild those closer bonds.”

The prime minister has repeatedly talked up his push to rebuild ties with the bloc after years of acrimony under successive Tory governments, promising that doing so will boost economic growth and living standards.

He visited Brussels for the first time since becoming PM to meet EU leaders this month, with further talks scheduled in the autumn and early next year.

Promising to “put the Brexit years behind us”, Sir Keir said a youth mobility scheme to let young people work and travel across the EU, and access to British fishing waters, would form part of ongoing discussions.

Despite Sir Keir setting relations on a more positive footing, the Resolution Foundation think tank has warned the PM is negotiating with his hands behind his back due to his red lines on the single market and customs union.

In a report this month, it said Sir Keir has already ruled out the biggest potential boosts to the UK economy, undermining his promise to put growth as the government’s “number one priority”.

Resolution Foundation principal economist Sophie Hale said: “Britain’s strained trading relations with the EU have caused major economic damage in recent years, so a reset certainly has the potential to boost growth.

“But it will take more than friendlier meetings and a few small-scale tweaks for farmers and touring musicians to shift the economic dial. Instead, the government will need to strategically approach where it prioritises closer alignment.”

A government spokesperson said: “We are working to reset the relationship with our European friends to strengthen ties, secure a broad-based security pact and tackle barriers to trade.”