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Boris Johnson Image Credit: Reuters

The Brexit proposals floated by Prime Minister Boris Johnson entail a bigger economic cost than what was agreed by his predecessor Theresa May, according to The UK in a Changing Europe.

The difference between the two comes from leaving the customs union with the European Union, not having level playing field arrangements and a limited or no free trade agreement after Britain leaves.

The impact of departing under Johnson’s proposals would be as much as 7 per cent of gross domestic product per capita after 10 years compared with staying in the EU, the think tank said.

May’s deal would cost as much as 5.5 per cent of GDP per head, while a no-deal Brexit would cause a drop of as much as 8.7 per cent.