Plaid Cymru adviser on economics Eurfyl ap Gwilym says the UK government's tax and spending plans are now unrealistic and must be abandoned Credit: Plaid Cymru
Plaid Cymru says research by the party's economics adviser shows that the short term costs of withdrawal from the European Union will more than wipe out any savings and leave the Chancellor having to raise taxes, cut spending or borrow more.
Mr Price was responding to research by Plaid adviser Eurfyl ap Gwilym. He says the decline in UK government finances will be far greater than any savings in EU contributions but that Wales needs to be protected from any loss in farm support payments and regional aid.
Dr ap Gwilym estimates that £656 million a year is at risk for Wales, worth £212 per person. He points to the example of Norway, which accepts free movement of labour from the EU and pays nearly as much per head for access to the single market as Britain does as a member state. It still has to pay tariffs on agricultural produce, for which it compensates its farmers with additional subsidies.
He also quotes the Institute of Fiscal Studies' estimate that whatever the long term advantages or drawbacks of leaving the European Union, the short term economic shock could cost the UK government between £20 billion and £40 billion by 2019-20.
In contrast, the leader of the Vote Leave campaign in Wales, former Conservative Welsh Secretary David Jones, has reasserted his "steadfast commitment" that Wales will be better off.
