British government forecasts doomsday no-deal Brexit scenario

A government report says Britain risks severely damaging its economy if lawmakers fail to approve a proposed Brexit deal. Staying in the European Union would be a far better option.

The British government on Wednesday published a report that spelled out a devastating scenario for the economy if Britain leaves the European Union in March 2019 without a deal.

The report found that the economy would only be around 2 percent smaller in 15 years time if it exited the bloc under terms similar to the British-EU draft deal agreed to last week. In a no-deal Brexit, the economy would be nearly 8 percent smaller and could shrink by up to 9.3 percent in the event of significant trade barriers.

"If the only consideration, the only consideration, was the economy, then the analysis shows clearly remaining in the European Union would be a better outcome for the economy, but not by much," British Treasury chief Philip Hammond told BBC earlier on Wednesday.