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Recession and £30 billion hit to public finances under no-deal

No-deal Brexit will lead to a £30 billion a year hit to the public finances and push the UK into recession, according to the first official projection from the Government’s independent budgetary watchdog.

The Office for Budget Responsibility's forecast shows that no-deal will completely wipe out the £26.6 billion so-called "Brexit war chest" that both Conservative leadership hopefuls have made spending plans for.

Commenting, Best for Britain supporter Jo Stevens MP said:

"You can't have Brexit and an end to austerity. It's clear that no-deal would devastate our public finances.

"The Government keep telling us there's no money left yet we're still spending huge sums of money preparing for a no-deal cliff-edge.

"It's clear we must stop Brexit so that we can properly fund our NHS, schools and police forces."


Goodbye Brexit war chest?

Here's the Office of Budget Responsibility's forecast.

In his Spring statement this year, Chancellor Philip Hammond pledged £26.6bn to boost the economy if MPs voted to leave the European Union with a deal

The "headroom" in his fiscal forecasts basically means he has the scope to borrow an extra £26.6bn, while staying within self-imposed limits on government borrowing.

At the time of the announcement this money was widely referred to in the media as Mr Hammond's Brexit "war chest", with both Conservative leadership hopefuls making plans to spend the cash.