The UK might change economic model if denied access to single market

Economy - Mohit Shah - Jan 16,2017

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the uk might change economic model if denied access to single market

Chancellor Philip Hammond said the UK might be forced to transform its “economic model” if it is expelled from the single market post-Brexit. 

Retaining a place in the European single market has become a major issue for Britain. Chancellor Philip Hammond commented that the government would not “lie down” and will put in efforts for staying competitive.

In response to Hammond’s statement to a German newspaper, Labour’s Jeremy Corbyn said, Hammond’s words echoed as a method for some kind of trade war with Europe. 

Often refused to comment on her plans in the past, Prime Minister Theresa May might spell out precise details regarding her Brexit strategy in a speech planned for Tuesday. 

According to reports, May will signal the exit from the EU single market as well as customs union; however, Downing Street labeled this as "speculation".

In his interview with the German newspaper, Mr. Hammond said, if the nation has no approach to the European market, or if Britain has to leave the European Union without a decision on market access, then economic damage could lead to suffering at least in the short-term.

He further added that “In this case, we could be forced to change our economic model and we will have to change our model to regain competitiveness”.  

However, some people are also looking at the true advantage of detaching from the EU which covers tearing up the stated rules and transform Britain somewhat like Singapore. 

But changing a large G7 economy with a booming social model to a city-state might be challenging. It might also involve the government to handpick specific industries it trusts to be successful and promptly neglecting existing sectors.