Brexit had bigger impact on UK economy than critics predicted, Rachel Reeves says
Brexit had bigger impact on Britain’s economy than even critics predicted, Rachel Reeves says
- Rachel Reeves stated that Brexit "needlessly" increased costs for UK businesses and that ministers are now "unashamedly rebuilding relations" with the European Union.
- Her comments were made at the government's regional investment summit in Birmingham, ahead of an upcoming Budget where Brexit is expected to be blamed for economic issues.
- Treasury officials anticipate the Office for Budget Responsibility will lower productivity growth forecasts, potentially creating a £20bn shortfall requiring tax rises.
- Wes Streeting welcomed the government's willingness to openly discuss the economic problems caused by Brexit, acknowledging its significant negative impact.
- Bank of England Governor Andrew Bailey warned that Brexit will negatively affect the UK's economic growth "for the foreseeable future," citing a decline in the potential growth rate.