Their Britain in the 2020s report argues this will be due to the country seeing lower growth, less investment and stagnated wages over the next decade as a result of leaving the EU.
In addition, given the political emphasis placed on controlling freedom of movement, it is expected that UK goods and services will face higher export costs than before, with Britain relying on a weaker currency to retain competitiveness.
IPPR research fellow and report author, Matthew Lawrence, said: “Brexit will profoundly reshape the UK. It will be a fundamental break in the existing political-economic order.
“Painful trade-offs are almost certain. Growth is expected to be lower, investment-rates worse, and the public finances weaker as a result of Brexit.
“Given the likelihood of significant new barriers to trade, a managed depreciation of the currency is also likely. A more mercantilist, interventionist political economy will increase consumer costs, and hit living standards.
The wide-ranging report also highlighted the growing risk that the country’s ageing population poses, with the number of people aged 65 and over set to increase from 11.6 million to 15.4 million between 2016 and 2030, with the population of over 85s nearly doubling.
This ‘demographic tipping point’ is expected to increase demand for health and social care services, with the projected health-funding gap for the NHS at £9bn in 2030/31, and the adult social care funding gap estimated at £13bn.
The predicted population changes up to 2030 are: