Arab Press

بالشعب و للشعب
Friday, Aug 01, 2025

UK debt to be worst in 50 years under no-deal Brexit

UK debt to be worst in 50 years under no-deal Brexit

Britain's leading independent economic research institute said even the most "relatively benign" no-deal Brexit would increase debt in the United Kingdom to levels not seen since the 1960s.
In its Green Budget report, published in the run-up to Chancellor Sajid Javid's first budget, the Institute for Fiscal Studies, also known as the IFS, warned that public borrowing could rise to 100 billion pounds ($122 billion) and debt would reach 90 percent of national income.

"The government is now adrift without any effective fiscal anchor," said IFS Director Paul Johnson, adding that "given the extraordinary level of uncertainty and risks facing the economy and public finances, (the government) should not be looking to offer further permanent overall tax giveaways in any forthcoming budget.

"In the case of a no-deal Brexit, though, it should be implementing carefully targeted and temporary tax cuts and spending increases where it can effectively support the economy," he added, with the IFS also warning that a no-deal Brexit could see the UK economy flatlining for two years.

A treasury spokesman defended the government's spending plans, saying: "The chancellor has already said that we will be reviewing the fiscal framework as we turn the page on austerity. In so doing, we will retain a fiscal anchor to public spending so that decisions are taken with a view to the long-term sustainability of the public finances."

Meanwhile, an assessment paper released by taxation body HM Revenues and Customs says a no-deal Brexit could leave UK businesses with an annual bill of 15 billion pounds in administration and form-filling.

Prime Minister Boris Johnson insists the country will leave the European Union at the end of October, "come what may, do or die", regardless of whether or not a deal has been reached, even though Parliament is doing its best to prevent no-deal.

Last week, he told the Conservative Party conference that leaving the EU would save the country 1 billion pounds per month, but the HM Customs figure, based on levels of trade from 2017, paints a very different picture.

Meanwhile, the war of words over Brexit continues, with an unnamed Downing Street source saying that any agreement is "essentially impossible not just now but ever" after a reportedly frosty phone conversation between Johnson and Germany's Chancellor Angela Merkel.

Merkel's office declined to comment on confidential discussions, but European Council President Donald Tusk subsequently tweeted to Johnson "what's at stake is not winning some stupid blame game. At stake is the future of Europe and the UK as well as the security and interests of our people."

Members of the opposition Labour Party called the latest move a "cynical attempt to sabotage the negotiations".

Johnson "will never take responsibility for his own failure to put forward a credible deal", said Labour's shadow Brexit secretary Keir Starmer, calling upon politicians across the party divide in Parliament to "unite to prevent this reckless government crashing us out of the EU".
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Russia Formally Recognizes Taliban Government in Afghanistan
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Germany Seeks Taliban Deal to Deport Afghan Migrants
Emirates Airline Expands Market Share with New $20 Million Campaign
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
Qatar Airways Clears Backlog of Passengers Following Missile Threats
Iran's Parliament Votes to Suspend Cooperation with Nuclear Watchdog
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Oman Set to Introduce Personal Income Tax, First in Gulf
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
×