OECD: Reversing Brexit would give 'significant' boost to United Kingdom economy

Brexit second referendum

GETTYDespite more than 17 million people voting Leave some groups continue to call for a second vote

The OECD, which advises industrialised nations on economic policy, said Britain should seek to maintain close economic ties with the European Union to weather the impact of Brexit.

Economic experts have made an explosive suggestion of a further referendum to reverse Brexit, to avoid the crippling of the British economy.

"Business investment would seize up, and heightened price pressures would choke off private consumption", the report said.

A second referendum that reversed Brexit would have a "significant" and "positive" impact on the UK's economy, according to a report by The Organisation for Economic Co-operation and Development.

Speaking to MPs earlier, Bank of England governor Mark Carney blamed a pick-up in inflation to 3.0 percent on the tumbling value of the pound since the Brexit vote, and said that a transition agreement for Britain's withdrawal from the European Union was in "everyone's interest".

The UK could consider reversing Brexit, the Organisation for Economic Cooperation and Development said on Tuesday, saying that doing so would give a "significant" boost to Britain's ailing economy.

"The United Kingdom is facing challenging times, with Brexit creating serious economic uncertainties that could stifle growth for years to come", Gurria warned, adding that "maintaining the closest economic relationship with the European Union will be absolutely key, for the trade of goods and services as well as the movement of labour".

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Maintaining close ties with the European Union and implementing policies to boost productivity will be crucial for maintaining future living standards, according to a new report from the OECD. "The current account deficit could be harder to finance, although its size would likely be reduced", the report warned.

"Negotiating the closest possible EU-UK economic relationship would limit the cost of exit".

Asked whether the United Kingdom should pursue a longer transition period for exiting the EU, Gurria said: "Common sense was invented by the British - if you need more time then give it more time".

Brexit has compounded the challenge of reviving labour productivity growth, which the OECD said had come to a "standstill" and made "no meaningful contribution" to United Kingdom output since 2007.

Brexit has compounded the challenge of reviving growth in Britain's labour productivity, which remains weakest outside of Greater London and the South East of England.

This kind of disparity between regions and workers 'may lead to, or be the result of, important differences among people in terms of income and wealth, jobs and earnings, and education and skills'. This can include the introduction of tighter criteria to restrict self-employment to truly independent entrepreneurs, enhance job security rights for workers on zero-hours contracts, as well as individually targeted programmes to improve lifelong learning opportunities, the Survey said.

"We aim to agree a Free Trade Agreement that is comprehensive and ambitious".

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