Brexit is costing the UK £90bn a year

Brexit is costing the UK around £90bn a year in lost tax revenue, new analysis published by the "Independent" has shown, just days before Chancellor of the Exchequer Rachel Reeves is set to present a crucial budget for the country, which is expected to see tax increases.

The grim analysis adds that the average Briton is thousands of pounds worse off, leading to calls for ministers to "repair the broken relationship with Europe."

As Rachel Reeves presents her budget on Wednesday, the government's official watchdog is also expected to confirm that leaving the European Union has been even more disastrous than previously thought.

A new study this month by the highly respected US The National Bureau of Economic Research think tank found that the economic damage from the 2016 vote to leave has left UK GDP between 6% and 8% lower than it could have been.

Analysis by the House of Commons Library estimates that Brexit is costing the Treasury up to £90 billion a year in lost tax revenue, with the average Briton reporting a hit to GDP per head of between £2,700 and £3,700.

Liberal Democrat leader Ed Davey has urged the governing Labour Party to abandon its “red lines” and negotiate a new customs union with the EU to restore ties with Europe.