Saudi Press

Saudi Arabia and the world
Monday, Jun 02, 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

Saudi Press
0:00
0:00
Close
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
UAE Offers Free ChatGPT Plus Subscriptions to Citizens
Lebanon Initiates Plan to Disarm Palestinian Factions
Iran and U.S. Make Limited Progress in Nuclear Talks
The Daily Debate: The Fall of the Dollar — Strategic Reset or Economic Self-Destruction?
Trump Administration's Tariff Policies and Dollar Strategy Spark Global Economic Debate
OpenAI Acquires Jony Ive’s Startup for $6.5 Billion to Build a Revolutionary “Third Core Device”
Turkey Weighs Citizens in Public as Erdoğan Launches National Slimming Campaign
Saudi-Spanish Business Forum Commences in Riyadh
Saudi Arabia and Spain Sign MoU to Boost SME Sectors
UK Suspends Trade Talks with Israel Amid Gaza Offensive
Iran and U.S. Set for Fifth Round of Nuclear Talks Amid Rising Tensions
Russia Expands Military Presence Near Finland Amid Rising Tensions
Indian Scholar Arrested in Crackdown Over Pakistan Conflict Commentary
Israel Eases Gaza Blockade Amid Internal Dispute Over Military Strategy
President Biden’s announcement of advanced prostate cancer sparked public sympathy—but behind closed doors, Democrats are in panic
A Chinese company made solar tiles that look way nicer than regular panels!
Indian jet shootdown: the all-robot legion behind China’s PL-15E missiles
The Chinese Dragon: The True Winner in the India-Pakistan Clash
Australia's Venomous Creatures Contribute to Life-Saving Antivenom Programme
The Spanish Were Right: Long Working Hours Harm Brain Function
Did Former FBI Director Call for Violence Against Trump? Instagram Post Sparks Uproar
US and UAE Partner to Develop Massive AI Data Center Complex
Apple's $95 Million Siri Settlement: Eligible Users Have Until July 2 to File Claims
US and UAE Reach Preliminary Agreement on Nvidia AI Chip Imports
President Trump and Elon Musk Welcomed by Emir of Qatar Sheikh Tamim with Cybertruck Convoy
Strong Warning Issued: Do Not Use General Chatbots for Medical, Legal, or Educational Guidance
Saudi Arabia Emerges as Global Tech Magnet with U.S. Backing and Trump’s Visit
This was President's departure from Saudi Arabia. The Crown Prince personally escorted him back to the airport.
NVIDIA and Saudi Arabia Launch Strategic Partnership to Establish AI Centers
Trump Meets Syrian President Ahmad al-Shara in Historic Encounter
Trump takes a blow torch to the neocons and interventionists while speaking to the Saudis
US and Saudi Arabia Sign Landmark Agreements Across Multiple Sectors
Why Saudi Arabia Rolled Out a Purple Carpet for Donald Trump Instead of Red
Elon Musk Joins Trump Meeting in Saudi Arabia
Trump says it would be 'stupid' not to accept gift of Qatari plane
Quantum Computing Threatens Bitcoin Security
×