In two more years, Britons could pay from £20bn to £40bn yearly because of an additional two-year austerity should it move to vote outside the European Union.
According to the National Institute of Economic and Social Research (NIESR), the UK could lose such amounts should it hit GDP rates from 2.1 to 3.5 per cent lower during the transition period.
The Institute for Fiscal Studies said Britons must expect deeper cuts to welfare and benefits. IFS Director and report author Paul Johnson said budget balancing during the first years of British independence from Europe would mean an additional one to two years of austerity against Britons.
He did acknowledge in his report that the UK could receive an estimated £8 billion yearly to its economy to help shore up its finances if voted for Brexit. But that is not enough as the UK economy could see a national income offset by 0.6 per cent.
“If the economy is just a few percentage points smaller than it otherwise would have been, we will be a bit worse off.”
The UK “could perfectly reasonably decide that we are willing to pay a bit of a price for leaving the EU and regaining some sovereignty and control over immigration and so on”, Mr Johnson said.
“That there would be some price though, I think is now almost beyond doubt.”