The impact of Brexit on the UK economy will be worse than that caused by the pandemic, according to the chairman of the UK budget watchdog.
Richard Hughes said the Office for Budget Responsibility (OBR) had assumed that leaving the EU “would reduce our long-term GDP by around 4%”, adding in comments to the BBC: “We believe the effect of the pandemic will reduce that (GDP) by an additional 2%. “
Gross domestic product – or GDP – is a measure of the size of the economy.
“In the long run, it’s true that Brexit has a bigger impact than the pandemic,” Hughes told the broadcaster, hours after the OBR responded to Rishi Sunak’s latest budget by saying he expected inflation to reach 4.4% while warning that it could hit “the highest rate seen in the UK in three decades”.
It came as Downing Street pledged to retaliate against France if Paris goes ahead with a “disappointing and disproportionate” threat of imposing sanctions in an escalation of a feud over boats. fishing.
The French government has dramatically warned that it will block British vessels in some ports next week if the post-Brexit fishing license dispute is not resolved.
Paris even went so far as to suggest that it could restrict energy supplies to the Channel Islands if no deal is reached with the UK, as relations since the EU left have deteriorated further. .
Number 10 said the threats did not appear compatible with “international law” and promised an “appropriate and calibrated response” if Paris does not back down.