Treasury civil servants working for Chancellor Philip Hammond (right) have drawn up a ‘worst case’ scenario for other Cabinet ministers, including Foreign Secretary Boris Johnson (left at Tory conference last week)
Leaked papers have revealed a so-called ‘hard’ Brexit could cost the Treasury £66billion a year in taxes if the economy shrinks dramatically.
Falling out of the single market without a deal and relying on World Trade Organisation rules could hit the size of the economy by 9.5 per cent, mandarins have warned.
The bleak picture is painted in a draft memo to Cabinet ministers by Treasury civil servants, seen by The Times, uses the same data behind the grim warnings set out by George Osborne ahead of polling day in June.
A loss of £66billion in revenue is equivalent to almost 10 per cent of the £716billion revenue the Treasury expects to collect this year.