Chancellor Rishi Sunak with his Budget red box (Victoria Jones/PA)
(Picture: PA Wire)The impact of Brexit on the UK economy will be worse than the coronavirus pandemic in the long-term, the chairman of the Office for Budget Responsibility has said.
Speaking to the BBC, Richard Hughes said leaving the EU would reduce the UK’s potential GDP by about 4 per cent in the long term while forecasts showed the pandemic would reduce GDP “by a further 2 per cent”.
“In the long term it is the case that Brexit has a bigger impact than the pandemic”, he said.
NEW OBR’s Richard Hughes on Brexit -
— Faisal Islam (@faisalislam) October 27, 2021
“so far the data that we've seen on impact of Brexit, especially taking into account fact new trading arrangements came in in January is broadly consistent with assumption we had, which is that it would reduce our long run GDP by around 4%” pic.twitter.com/lRTHYpgYga
His comments come after Rishi Sunak delivered his budget, announcing a range of reforms to alcohol and flight prices, universal credit and creating a “levelling up fund”.
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But his joy was soon curbed after being challenged on the chairman’s comments. In a BBC interview this morning, when pushed on the OBR’s assessment, Sunak laughed the criticism off and said: “That’s their view. What I’m doing is making sure that we capitalise on the opportunities that Brexit has brought.”
Martha Kearney - Do you agree with the OBR that brexit is doing twice as much damage to the economy than the pandemic has done?
— Haggis_UK 🇬🇧 🇪🇺 (@Haggis_UK) October 28, 2021
Rishi Sunak - That's their view.... freeports.. 🤦#r4today pic.twitter.com/40IH8ms7TD
He added: “We’ll be doing a lot on the trade agenda, and we’re seeing the benefits of that will bring to the economy, and our ability to sign trade deals around the country...”
But hardly reassured by Sunak, and reacting to the news, people were furious.
Peter Stefanovic, who makes videos fact checking Boris Johnson’s claims, said:
OBR’s Richard Hughes says impact of Brexit will be double that of the pandemic. This should be front page news https://t.co/s9HoNJMI5Q
— Peter Stefanovic (@PeterStefanovi2) October 28, 2021
While satirist Jolyon Rubinstein said:
From Raw sewage in our rivers to the success of Brexit the whole country KNOWS Boris Johnson is lying. The only question now is do YOU support his lies? https://t.co/EN0yNzcxan
— Jolyon Rubinstein (@JolyonRubs) October 28, 2021
Journalist Otto English called it an “utterly predictable disaster”:
Covid came out of the blue. Brexit was a deliberate, self-inflicted wound that will damage us long after the virus has gone. An utterly predictable disaster. No sane person can take joy from that. What does my head in is that they just got away with it.https://t.co/UJAvgzkRlV
— Otto English (@Otto_English) October 28, 2021
And campaign group Best for Britain said:
The sooner the government accepts these figures and begins taking decisive action to ease the Brexit burden on businesses, the better our economy will fare.
— Best for Britain (@BestForBritain) October 28, 2021
Anything less is almost criminally negligent - and a wilful abandonment of truth, data & reality.https://t.co/FHrVPFWmpI
Here’s how other people reacted:
“Impact of Brexit on economy 'worse than Covid'”
— Dr Mike Galsworthy (@mikegalsworthy) October 28, 2021
For me, voting & campaigning for Remain was less about the obvious economic impact — and more about just wanting my country to be a responsible country. https://t.co/y3utMJB7FT
Sunlit uplands latest.
— David Schneider (@davidschneider) October 28, 2021
According to the government’s own figures, Brexit is twice as damaging (4% of GDP) as an actual multi-lockdown, business-neutering, deadly pandemic.
I don’t remember seeing that on the side of a bus. https://t.co/CbwYyX4vNb
— thefilmexciter (@thefilmexciter) October 28, 2021
Imagine if they had put that on a bus:
— Marcus Chown (@marcuschown) October 28, 2021
BREXIT WILL BE TWICE AS AS BAD AS A ONCE-IN-100-YEARS GLOBAL PANDEMIChttps://t.co/sOIuZf54z2
Not a surprise. Brexit is an economic, environmental, cultural and political catastrophe.
— Lee 🌍 (@LSaczak) October 27, 2021
It's a total catastrophe economically and culturally but there are some positives, above all we can now use 3 pin plugs and the sewage thing.
— Ali T. (@Ali3Mctavish) October 27, 2021
Sun! Lit! Up! Lands!
