No-deal Brexit would cost EU economy £100bn, report claims

Trading bloc would suffer more in lost output than thought, although lack of trade deal would cost UK around 125bn

A no-deal Brexit would cost the remaining 27 EU nations a112bn (99.5bn) in lost economic output, according to research by a UK-based thinktank.

Although the UK would still be the biggest loser from crashing out of the EU single market and customs union without a new trade deal - with a cost to the economy of 125bn by 2020 - the EU would also suffer a bigger economic hit than previously thought by the end of the decade, according to the consultancy Oxford Economics.

A hard Brexit would take Britain out of the EU's single market and customs union and ends its obligations to respect the four freedoms, make big EU budget payments and accept the jurisdiction of the ECJ: what Brexiters mean by "taking back control" of Britain's borders, laws and money. It would mean a return of trade tariffs, depending on what (if any) FTA was agreed. See our full Brexit phrasebook.