British economy would considerably worsen amid no-deal Brexit, says institute

The IFS warned that a no-deal Brexit was likely to mean two years of zero growth

The IFS warned that a no-deal Brexit was likely to mean two years of zero growth

According to a new report, entitled The IFS Green Budget 2019, by think tank the Institute for Fiscal Studie in association with Citi and the Nuffield Foundation, a no-deal Brexit would push United Kingdom debt to its highest since the 1960s as borrowing was likely to rise to £100bn ($122.9bn) and total debt would soar to 90% of national income.

"The Government is now adrift without any effective fiscal anchor", he said.

As a result, accumulated national debt would climb to nearly 90 per cent of GDP (Gross Domestic Product) for the first time since the mid-1960s, the IFS said.

The figures have been released as the IFS compiles its Green Budget, which examines the challenges that chancellor Sajid Javid will contend with as he prepares for his first Budget in post.

As the government would look to encourage growth after a no-deal Brexit, the IFS predicts a quick-fire spending spree which would help push up debt to 90 per cent of national income, a ten per cent increase on current levels.

House Democrats subpoena Trump lawyer Giuliani in impeachment probe over Ukraine
On Friday, Intelligence Community Inspector General Michael Atkinson will testify at an Intelligence Committee hearing. One week later, Taylor offered clues about the contents of that call, and it suggests a quid pro quo was on the table.

Johnson said: "Given the extraordinary level of uncertainty and risks facing the economy and public finances, it [the government] should not be looking to offer further permanent overall tax giveaways in any forthcoming Budget".

It found that a no-deal Brexit will hit the United Kingdom economy the hardest and drag down growth.

Meanwhile, a government paper on Monday found United Kingdom and European Union firms would be faced with in the event of a no-deal Brexit.

Mr Johnson said that it would be "crucial" that government spending programmes were temporary.

It warned that a rise in public spending in 2020 would likely be followed by "another bust" as the government would have to deal with "the consequences of a smaller economy and higher debt for funding public services". "An economy that turns out smaller than expected can, in the long run, support less public spending than expected, not more".

Vikings' Stefon Diggs doesn't lessen speculation, says 'truth to all rumors'
Diggs admitted he wasn't happy with his team's offense - "I can't sit up here and act like everything is okay. Diggs' target share has declined 4% in the first four games of the season from where it was a year ago .

This idea is supported by Christian Schulz, the leading United Kingdom economist at Citi, one of the leading firms which helped produce the IFS report.

Even if Brexit were called off, the flatlining of business investment in theUnited Kingdom over the past three years would be hard to unwind, Schulz said at a media briefing on Tuesday.

A continued delay to Brexit would mean continued uncertainty and very poor growth of only around one per cent a year.

"But with the chances of us leaving in less than four weeks without a deal increasing by the day, the Prime Minister has missed a real opportunity to back British farmers".

Commenting on the change to lorry import taxes, Meredith Crowley, an economist specializing in worldwide trade from the University of Cambridge, said the UK's heavy goods industry is facing "some difficulty with Brexit".

France's Macron urges Johnson to expedite Brexit discussions with EU
And let's make Brexit work for both sides. "They should be under no illusions or misapprehensions", he added. If not the United Kingdom will leave with no deal.

Latest News