The effects of Brexit on the UK economy will be worse than those caused by the pandemic, according to the Chair of the Office for Budget Responsibility (OBR).
Richard Hughes said the fiscal watchdog assumed that leaving the EU would “reduce our long-term GDP by about 4%,” as he did. said BBC : “We assume that the effects of the pandemic will reduce this (GDP) production by a further 2%.”
The GDP – the gross domestic product – is a measure of the size of the economy.
“In the long term, Brexit has a bigger impact than the pandemic,” said Hughes.
His comments came just hours after the OBR responded to Rishi Sunak’s latest budget by saying it expected inflation to reach 4.4% while warning it could hit “the highest rate in the UK in three decades” .
It came when Downing Street promised to retaliate against France if Paris continues its “disappointing and disproportionate” threat to impose sanctions if a dispute over fishing boats escalates.
The French government has warned dramatically that it will block British ships from some ports next week if it fails to resolve a dispute over fishing licenses after Brexit.
Paris even went so far as to propose cutting energy supplies to the Channel Islands if an agreement is not reached, as relations continued to deteriorate.
No. 10 responded by stating that such threats did not appear to be compatible with “international law” and promised an “appropriate and calibrated response” if Paris does not give in.
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