Boris Johnson set to endorse report backing Britain's exit from EU
Report by chief economic adviser Gerard Lyons says EU exit could be best option for London
Sunday 03 August 2014
Leaving the European Union would be better for London than staying in it without reform, a report commissioned by Mayor of London Boris Johnson has concluded.
Mr Johnson is expected to give his backing to the study, carried out by his chief economic advisor Gerard Lyons, in a speech on Wednesday.
Speaking to the Sunday Telegraph, Mr Lyons said exiting the EU was a “viable option” for Britain and warned “meaningful” reform could only be achieved if the UK was “serious about leaving”.
He said: “The best economic scenario for Britain over the next 20 years is to be in a significantly reformed European Union.
"But if, as an alternative, the UK leaves the EU on good terms, while adopting sensible outward-looking trading policies, that comes a very close second.“
Boris Johnson's backing of the report is likely to place more pressure on the Prime Minister to show willing to leave the EU if negotiations fail to achieve reform
According to the Telegraph, the Lyons report predicts London’s GDP of £350 billion will grow to £640 billion by 2034 if EU reforms boost trade with growing markets in the rest of the world.
But, growth up to £614 billion would still be achieved by the capital if Britain quit the EU to pursue its own outward-looking trade policies, the report concluded.
Staying in an unreformed EU would see London’s GDP grow to just £495 billion over the same 20 year period, while leaving the EU but failing to adopt trade-friendly policies would limit growth to just £430 billion.
The report lays out a list of eight demands for reform, which go beyond what Prime Minister David Cameron has publicly set out.
Boris Johnson's war on diesel
Tougher benefits rules for EU migrants: New arrivals will lose payments after just three months
David Cameron hints at plans to raise the 40p tax threshold
The Sunday Times quoted an unnamed source close to the Mayor as saying Mr Johnson “favours a renegotiation” in which Britain stays in the common market.
Mr Cameron, who has promised an in/out referendum on Britain’s EU membership in 2017, has said he hopes to be able to recommend voters opt to stay in the EU following planned renegotiations.
It is expected the mayor’s comments will increase pressure on the Prime Minister to indicate his readiness to exit the union if renegotiations fail to deliver reform.
Additional reporting by Press Association.
- 2 Mystery man who gave mum heart-warming note on train 'wanted to put a smile on her face'
- 3 Michelle Obama highlights harsh restrictions faced by Saudi women after meeting King Salman without wearing a headscarf
- 4 Mafia's wall of silence broken: Victim of Cosa Nostra's extortion rackets in its Corleone heartland co-operates with authorities for the first time ever
- 5 Amal Clooney gives excellent answer to fashion question at European Court of Human Rights
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
9 reasons Greece's experiment with the radical left is doomed to failure
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
Negotiable: Tradewind Recruitment: This post arises as a result of the need to...
£120 - £150 per annum: Tradewind Recruitment: I am recruiting on instruction o...
£70000 per annum: Ashdown Group: Head of Finance - Financial Controller - Fina...
£24000 - £28000 per annum + benefits: Ashdown Group: Marketing Executive - Wim...