A 1% increase in inflation would increase the UK Government’s debt interest costs by £26 billion, the National Audit Office (NAO) warns today (Tuesday).
Commenting on the report, ‘Evaluating the government balance sheet: borrowing’, NAO head Amyas Morse warns that leaving the EU could “potentially exacerbate” risks to the public finances.
Commenting, Chris Leslie MP, leading supporter of Open Britain and former Shadow Chancellor, said:
“Brexit is already hitting our economy and squeezing family incomes, and this report makes clear the situation could get even worse.
“A further increase in inflation driven by higher import costs as a result of Brexit could clobber the public finances, with £26 billion more being spent on paying the interest on the country’s debt rather than on our NHS or schools.
“To prevent such drastic damage to our economy, Ministers must reverse their reckless and ideological choice to leave the Single Market and the Customs Union.”