Brexit is costing the UK's economy £100bn a year as the way the split from the EU has been implemented leaves companies struggling to attract investment and hire workers.

On the third anniversary of Britain leaving the bloc, the nation’s economy is 4pc smaller than it might have been according to analysis by Bloomberg Economics.

Business investment in the UK has grown 19pc less than the average across G7 economies, it showed.

Economists Ana Andrade and Dan Hanson said: "Did the UK commit an act of economic self-harm when it voted to leave the EU in 2016? The evidence so far still suggests it did.

"The main takeaway is that the rupture from the single market may have impacted the British economy faster than we, or most other forecasters, expected."

The data comes as the IMF downgraded its 2023 UK growth forecast by more than any other G7 nation.

However, cutting ties with the EU has allowed Britain to create freeports to spur trade and reform financial services rules to the benefit of banks in the City of London.

Rishi Sunak said: "We’ve made huge strides in harnessing the freedoms unlocked by Brexit to tackle generational challenges. 

"Whether leading Europe’s fastest vaccine rollout, striking trade deals with over 70 countries or taking back control of our borders, we’ve forged a path as an independent nation with confidence."

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