Commenting on the Prime Minister’s speech today at the Bank of England, where she praised the benefits of free trade and a balanced approach to public spending, Alison McGovern MP, leading supporter of Open Britain, said:
“The Prime Minister seems to see no contradiction in touting the benefits of free trade and careful public spending, whilst simultaneously wrenching the UK out of the largest free trade bloc in the world, an act of economic self-harm that is forecast to blow a £59 billion hole in our public finances.
“This week, the curtain has been lifted on the fantasy approach to trade trumpeted by hard Brexit enthusiasts. In just a few short months, the Prime Minister has gone from claiming the UK would be at the front of the queue for a US trade deal, to threatening a trade war with Washington.
“The Government should listen to the warnings of the Governor of the Bank of England, who warned today that a hard Brexit will make British people poorer, and commit to keeping the UK in both the Single Market and the Customs Union permanently. That is the best way to protect Britain’s interests and prosperity.”
Notes to editors:
Mark Carney said today: “In exceptional circumstances like today when the economy is facing profound structural change, the MPC can extend the horizon over which it returns inflation to target from above in order to balance the effects on jobs and activity. After all, even though monetary policy cannot prevent the weaker real income growth likely to accompany the transition to new trading arrangements with the EU, it can influence how this hit to incomes is distributed between job losses and price rises.”
After the Autumn Statement of 2016, the Office for Budget Responsibility (OBR) estimated that there would be a cumulative £122 billon of extra borrowing over the next five years, with £59 billion of that as a direct result of Brexit.