If the UK crashed out of the EU with no deal it would result in cause a 9.7% economic hit, it said.
The chancellor Philip Hammond told the BBC this morning that in “pure economic terms” the UK will lose out under every possible form of Brexit. “The economy will be slightly smaller in the prime minister’s preferred version of the future partnership,” he said.
In Prime Ministers Questions today, May defended her current deal, stating that “The analysis shows the deal we have negotiated is the best deal for jobs and the economy which delivers on the result of the referendum.”
In a further blow, separate analysis published today by the Bank of England forecast that the UK economy would plummet 8% in the event of a no-deal Brexit.
The Bank also warned that the pound would crash, inflation would soar and interest rates would have to rise if there was no deal.