FREE now SUBSCRIBE Invalid email Make the most of your money by signing up to our newsletter fornow We will use your email address only for sending you newsletters. Please see our Privacy Notice for details of your data protection rights.

The Rand Corporation report found a no-Brexit deal would cost the UK nearly five per cent of its overall GDP – around £104bn – over the course of ten years after Brexit. Charles Ries, the corporation's vice-president and one of the authors of the report, said: "The European single market is essentially friction-free trade in goods and services. "There is no inspection across the border, the same standards and conformity assessment practices everywhere. "So not having all those things will affect the British economy."

PARLIAMENT TV/INSTITUTUL ASPEN ROMANIA The Rand Corporation report claims the UK will suffer under all Brexit scenarios

Speaking to BBC Radio 4 Today, Mr Ries said that membership of the single market allowed the "powerhouse" of the British economy – services – to flourish and the UK would miss out terminating its membership after Brexit. He continued: "The single market gives really very open access to British services and services are the powerhouse behind the British economy." According to the report, all Brexit scenarios would have a great impact on the British economy while the EU would suffer from significantly minor risks. The study reads: "The WTO outcome would likely move the UK further from EU standards and over time significantly increase non-tariff barriers, harming the ability of UK businesses to sell goods and services to EU countries. "The EU would also lose out under the WTO scenario, but the effect is relatively minor—a 0.7 per cent drop in GDP 10 years after Brexit."