Brexit deal which keeps us in the customs union will cost every Brit £800, even Remainers admit
There could be £26billion less to spend on the NHS, hospitals and schools, the report warned
A SOFT Brexit customs union deal with the EU could cost every single Brit £800, a damning report has revealed.
There could be £26billion less to spend on the NHS, hospitals and schools, research from the National Institute of Economic and Social Research showed.
Theresa May is rumoured to be on the verge of offering a customs union style deal with Labour which would keep us tied to the bloc for years to come.
The research, commissioned by pro-Remainers the People's Vote campaign, which want to stop Brexit altogether, says trade still wouldn't be as easy as it is now.
The economic burden of barriers between the EU and UK would mean businesses could take a hit.
Boffins predicted that the UK would see its economy shrink by around 3.1 per cent more than it would be had we stayed in the EU.
Staying in a customs union would include "significant non tariff barriers that would hinder trade, particularly in services", the report concluded.
Rachel Reeves MP said today: "It is a mistake to regard this as a soft option - left alone fix-all for a political crisis that has its roots in promises that can't be met, real costs that have been ignored."
And Garry Young, Director of Macromodelling and Forecasting for NIESR added: "Leaving the EU for a customs union will make it more costly for the UK to trade with a large market on our doorstep, particularly in services which make up 80 per cent of our economy."
And today polling showed that a customs union deal would see voters from both the Tories and Labour abandon the party.
Opinium research said that three in four voters said such an agreement would not honour the result of the 2016 referendum.
And two thirds of people said they would feel disappointed, angry or anxious about such a deal.
What is the EU customs union and are we leaving it?
THERESA May has promised to leave the EU's customs union after we quit the EU.
But Labour want to forge a customs union style deal which would keep us tied to the bloc's trading rules.
The European customs union is an agreement between the 28 member states to trade goods more easily.
Paperwork and goods checks are reduced when goods cross borders of these countries.
It is agreed that there is no tariff to be paid on goods traded within the EU.
Trade deals with countries outside of the EU are agreed upon collectively and tariffs on goods exchanged with these countries are the same for each EU member country.
So if we were to leave, we would be able to strike trade deals with other countries outside of the EU's customs union. If we stay in, we can't do that.
And we have to stay close to EU trade rules to make sure there's no disruption at borders.
One of the sticking points with trade is how to overcome the issue of the Northern Irish border - where the UK will meet the EU.
If we have different trading rules an effective hard border emerges between North and South - which could spark a return to the violence of the troubles.
Having a customs border in the Irish sea would cut off Northern Ireland from the rest of the UK, which is why the DUP are so opposed to Mrs May's deal as it stands.
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27 per cent said it would make them less likely to back Labour, and even more said they would be turned off the Conservatives.
Ex-minister Sam Gyimah said today: "These poll findings show such an outcome would be hugely unpopular with voters because it would satisfy neither Leavers nor Remainers."
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