UK Prime Minister Theresa May has come under fire not just from opposition but also from her Conservative colleagues, especially those who backed Brexit during the referendum and prefers a hard Brexit rather than a soft one as official documents suggest that Brexit transition deal would cost the United Kingdom billions of pound even after exit from the European Union.
According to official projections made by the Office for Budget Responsibility (OBR) for this week’s Budget, Britain will have to fork out at least another £28 billion to Brussels in the two years after it has officially left the EU. During her televised speech in Florence, the Prime Minister offered to pay Britain’s full contribution to the end of the current EU Budget which ends in 2021 two years after Brexit takes place in March 2019. This was in exchange for a two year transition period where the UK leaves the EU in stages to allow the country and businesses to adjust. However, the cost was estimated to be £20 billion by her government.
However, OBR has said that the cost would be at least 40 percent more than the government’s projection. The office said that the UK would need to pay £13.8 billion in 2019/20 and another £14 billion in 2020/21. In addition to that, it has warned that the actual cost could be higher.
