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23 August 2018

The Guardian: Philip Hammond's £80bn no-deal warning exposes Tory rift


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Tory divisions over Brexit were exposed afresh on Thursday, as Philip Hammond warned that leaving the EU without a deal would blow an £80bn hole in the public finances, just hours after Dominic Raab sought to play down the risks.


[...] Hammond’s department released a letter from the chancellor to Nicky Morgan, chair of the treasury select committee.

He highlighted Whitehall forecasts from earlier this year, suggesting the hit to economic growth if Britain left without a trade deal would force the Treasury to borrow an extra £80bn over the next decade.

“Chemicals, food and drink, clothing, manufacturing, cars, and retail were estimated to be the sectors most affected negatively in the long-run, with the largest negative impacts felt in the north-east and Northern Ireland,” Hammond wrote.

 

 

 

 

Morgan said: “The Chancellor has confirmed that the Government forecasts a disastrous hit to our economy and living standards in the event of a ‘no-deal’ Brexit.”

Leavers reacted furiously. Jacob Rees-Mogg, chair of the European Research Group (ERG), said: “The Treasury and the chancellor want to undermine Brexit but their incessant scaremongering has led to the self-immolation of their credibility.” [...]

Full article on The Guardian

Letter from Chancellor of the Exchequer Philip Hammond to MP Nicky Morgan



© The Guardian


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