A report published by Oliver Wyman shows households will be worse off and businesses less profitable no matter what kind of exit deal the UK government negotiates.
The British Chambers of Commerce (BCC) on Monday slashed its growth forecast for the UK economy this year to 1.3%, which would be its weakest performance since the financial crisis.
The government, this weekend, proposed billions in new funding for the National Health Service, said that money saved as a result of Brexit would be used to finance some of the increased spending.
The report by Oliver Wyman said a “no deal” Brexit would cost each British household £961 a year, with poorer households families hit hardest.
Britain has already fallen out of the world’s top five economies, and growth stalled to just 0.1% in the first quarter. Economists forecast only marginal improvement in the second quarter.
Chancellor Philip Hammond, is charged with bringing down the deficit – the amount of money the government spends above the amount it gains in revenues from taxes and investment – to zero.
Some economists argue that such a focus on “balancing the books” is unnecessary, and that the government could easily borrow more without spooking the international markets which fund Britain’s deficit requirements.
Because this stranglehold on the public finances and the lack of progress over Brexit and ever tighter deadlines are worrying investors and business executives.
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