Hard Brexit to Cost UK Treasury £90bn - Forex News by FX Leaders
No-deal Brexit?

Hard Brexit to Cost UK Treasury £90bn

Posted Wednesday, July 3, 2019 by
Arslan Butt • 1 min read

According to data from the UK government, a no-deal Brexit could cost the Treasury £90bn – a significant dent in public finances. This figure was stated by the UK Chancellor Philip Hammond, who added that there was an option to vote out the Conservative government in a no-confidence motion to prevent such an outcome.

He suggested that he could work with other MPs to block a hard Brexit, which is becoming increasingly likely with each passing day. The Treasury would not be able to afford long-term tax breaks or hikes in spending in the event of such a scenario.

While addressing the House of Commons on Tuesday, Hammond remarked, ““We’ve built up around £26-27bn of fiscal headroom and the purpose of having that headroom is precisely in order to protect the UK economy from the immediate effects of a possible no-deal exit.”

This fiscal headroom would only be adequate to smooth over issues in the event of UK’s departure from the EU with a deal in place.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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