01/08/2018 11:10 BST | Updated 01/08/2018 13:10 BST

Theresa May's Brexit Plan Could Cost You £500 Per Year

And experts warn it could be as much as £800.

Christopher Furlong via Getty Images

Theresa May’s Brexit plan will cost people £500 per year, an influential economics think-tank has warned.

The National Institute of Economic and Social Research (NIESR) also said a no deal Brexit would cost the UK economy at least around £800 per person.

The prime minister has come in for fierce criticism from eurosceptic Tory MPs over her Chequers proposals, which they see as tying the UK too closely to the EU after Brexit.

But the NIESR said the plan – which focuses on securing a free trade area for goods trade and an ambitious arrangement for services, while restricting free movement of people – would still hurt the economy more than a softer Brexit.

“In our view the government will have to make significant concessions to the EU,” the think-tank said.

“The UK economy is facing an unusual level of uncertainty because of Brexit.”

“The UK government’s White Paper, which set out its preferences for that new relationship, has failed to unite the government or Parliament, leaving open an entire spectrum of possible outcomes,” it added.

Lib Dem leader Vince Cable said “no one voted to have less money in their pockets”. 

“No one deserves to be punished because of the mess created by the Conservatives,” he said.

Labour MP Alison McGoverna supporter of the People’s Vote campaign, said the report justified calls for a referendum on the eventual deal.

“This crucial report demonstrates that it is very hard to see any upside to Brexit,” she said.

“What’s more, we know that those areas dominated by manufacturing will be worst off of all. And the national economic situation will rob Britain of the chance to invest in decent public services.”

Foreign Secretary Jeremy Hunt yesterday warned the risk of a no deal Brexit was  “increasing by the day”.

“There is real chance of no deal by accident. Everyone is assuming, no, no, no, this will never happen. Well, actually, it could,” he said during a visit to France.