City AM: Without Brexit, there would never have been a harsh austerity Budget this week, says BoE veteran

15 November 2022

The real reason Britain is facing harsh austerity measures is the UK’s departure from the EU, according to a senior economist...Former Bank of England interest rate policy maker Michael Saunders said that Brexit has ‘permanently damaged’ the UK’s economy.

The UK economy as a whole has been permanently damaged by Brexit,” said Saunders, who was a member of the Bank of England’s monetary policy committee. “It’s reduced the economy’s potential output significantly, eroded business investment,” Saunders told Bloomberg TV.

“If we hadn’t had Brexit, we probably wouldn’t be talking about an austerity budget this week.”

Michael Saunders

“The need for tax rises, spending cuts wouldn’t be there, if Brexit hadn’t reduced the economy’s potential output so much,” he decalred.

Saunders, who became a member of the rate-setting committee in 2016, left the Bank of England’s prominent position in August of this year....

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