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
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
×