Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

UK debt to be worst in 50 years under no-deal Brexit

UK debt to be worst in 50 years under no-deal Brexit

Britain's leading independent economic research institute said even the most "relatively benign" no-deal Brexit would increase debt in the United Kingdom to levels not seen since the 1960s.
In its Green Budget report, published in the run-up to Chancellor Sajid Javid's first budget, the Institute for Fiscal Studies, also known as the IFS, warned that public borrowing could rise to 100 billion pounds ($122 billion) and debt would reach 90 percent of national income.

"The government is now adrift without any effective fiscal anchor," said IFS Director Paul Johnson, adding that "given the extraordinary level of uncertainty and risks facing the economy and public finances, (the government) should not be looking to offer further permanent overall tax giveaways in any forthcoming budget.

"In the case of a no-deal Brexit, though, it should be implementing carefully targeted and temporary tax cuts and spending increases where it can effectively support the economy," he added, with the IFS also warning that a no-deal Brexit could see the UK economy flatlining for two years.

A treasury spokesman defended the government's spending plans, saying: "The chancellor has already said that we will be reviewing the fiscal framework as we turn the page on austerity. In so doing, we will retain a fiscal anchor to public spending so that decisions are taken with a view to the long-term sustainability of the public finances."

Meanwhile, an assessment paper released by taxation body HM Revenues and Customs says a no-deal Brexit could leave UK businesses with an annual bill of 15 billion pounds in administration and form-filling.

Prime Minister Boris Johnson insists the country will leave the European Union at the end of October, "come what may, do or die", regardless of whether or not a deal has been reached, even though Parliament is doing its best to prevent no-deal.

Last week, he told the Conservative Party conference that leaving the EU would save the country 1 billion pounds per month, but the HM Customs figure, based on levels of trade from 2017, paints a very different picture.

Meanwhile, the war of words over Brexit continues, with an unnamed Downing Street source saying that any agreement is "essentially impossible not just now but ever" after a reportedly frosty phone conversation between Johnson and Germany's Chancellor Angela Merkel.

Merkel's office declined to comment on confidential discussions, but European Council President Donald Tusk subsequently tweeted to Johnson "what's at stake is not winning some stupid blame game. At stake is the future of Europe and the UK as well as the security and interests of our people."

Members of the opposition Labour Party called the latest move a "cynical attempt to sabotage the negotiations".

Johnson "will never take responsibility for his own failure to put forward a credible deal", said Labour's shadow Brexit secretary Keir Starmer, calling upon politicians across the party divide in Parliament to "unite to prevent this reckless government crashing us out of the EU".
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Hungary Ranked Among the World’s Safest Travel Destinations for 2025
G7 Leaders Fail to Reach Consensus on Key Global Issues
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Man Convicted of Fraud After Booking Over 120 Free Flights Posing as Flight Attendant
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Beata Thunberg Rebrands as Beata Ernman Amidst Sister's Activism Controversy
Hungarian Parliament Approves Citizenship Suspension Law
Prime Minister Orbán Criticizes EU's Ukraine Accession Plans
Hungarian Delicacies Introduced to Japanese Market
Hungary's Industrial Output Rises Amid Battery Sector Slump
President Sulyok Celebrates 15 Years of Hungarian Unity Efforts
Hungary's Szeleczki Shines at World Judo Championships
Visegrád Construction Trends Diverge as Hungary Lags
Hungary Hosts National Quantum Technology Workshop
Hungarian Animation Featured at Annecy Festival
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
UK and EU Reach New Economic Agreement
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
UK and EU Reach Agreement on Gibraltar's Schengen Integration
Israeli Finance Minister Imposes Banking Penalties on Palestinians
U.S. Inflation Rises to 2.4% in May Amid Trade Tensions
Trump's Policies Prompt Decline in Chinese Student Enrollment in U.S.
Global Oceans Near Record Temperatures as CO₂ Levels Climb
Trump Announces U.S.-China Trade Deal Covering Rare Earths
Smuggled U.S. Fuel Funds Mexican Cartels Amid Crackdown
Austrian School Shooting Leaves Nine Dead in Graz
Bezos's Lavish Venice Wedding Sparks Local Protests
Europe Prepares for Historic Lunar Rover Landing
Italian Parents Seek Therapy Amid Lengthy School Holidays
British Fishing Vessel Seized by France Fined €30,000
Dutch Government Collapses Amid Migration Policy Dispute
UK Commits to 3.5% GDP Defence Spending Under NATO Pressure
Germany Moves to Expedite Migrant Deportations
US Urges UK to Raise Defence Spending to 5% of GDP
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Low Turnout Jeopardizes Italy's Citizenship Reform Referendum
Transatlantic Interest Rate Divergence Widens as Trump Pressures Powell
EU Lawmaker Calls for Broader Exemptions in Supply Chain Legislation
France's Defense Spending Plans Threatened by High National Debt
European Small-Cap Stocks Outperform U.S. Rivals Amid Growth Revival
Switzerland Proposes $26 Billion Capital Increase for UBS
×