A top economist has published new research arguing that the EU is not the answer to Britain’s economic challenges, as the Government moves to ‘reset’ the UK’s relationship.

Dr Gerard Lyons of the Centre for Policy Studies has written a new paper arguing that Britain’s growth problems existed well before Brexit, and in fact leaving the bloc has given the Government more powers to solve the UK’s problems.

From free trade deals to cutting red tape for businesses, the expert argues that despite being frequently touted by Remainers, rejoining the Single Market or Customs Union would harm the UK’s economy.

He further argues that questionable statistics, dodgy counterfactuals and misleading international comparisons are all being used by anti-Brexit activists to make untrue claims about their side of the argument.

While Dr Gerard concedes that leaving the EU has had an affect on the British economy, he says the new freedoms granted to the government could now grant them the ability to fix Britain’s problems in a more nimble and dynamic way than is available to fellow European governments.

Publishing his research paper today, Dr Lyons said: “Labour seems to have recognised that growth is key to Britain’s economic future and have announced a number of policies to try and deliver it”.

“Unfortunately, there are many voices falsely claiming that rejoining the EU, its Single Market, or the Customs Union would help tackle Britain’s growth woes.

“This is based on a misunderstanding of our underlying growth issues and unreliable, unhelpful counterfactuals about what may or may not have happened if we had remained in the EU.

“That is not the situation we find ourselves in. Britain voted to leave and we need to take full advantage of the trade and regulatory opportunities that are now available to us.

“Our future relationship with the EU must be based on an accurate assessment of the current situation, not wishful thinking.”

The paper pours cold water the frequently-touted claim that Britain’s economy will be 4% smaller in 15 years’ time than if we had stayed in the EU, a claim that is now distracting policy-makers from the UK’s genuine problems.

While the paper is aimed at the incumbent Labour Government, it also takes aim at the previous Tory administration for failing to “articulate a coherent vision and deliver a properly thought-out post-Brexit economic policy”, something he says has allowed anti-Brexit figures to define the narrative that leaving the bloc damaged Britain’s economy and role on the global stage.

He argues that the major turning point in recent years was not 2016, but 2008 and some of policies put in place by Gordon Brown in response to the financial crisis.

Dr Lyons says that while it was short-sighted for some pro-Brexit politicians to present Brexit as the solution to the country’s problems, the UK is “still better placed to pursue a reforming, pro-growth agenda from outside the EU”.

The top economist will be difficult for Remainers to ignore, as Dr Lyons argued before the referendum that leaving would produce an economic shock.

However he suggests that with the right policies, Brexit can help create a “Nike tick” recovery for Britain - a short dip followed by a sustained uptick.