Layla Moran

OBR forecast shows Brexit a disaster for the pound in your pocket

The independent Office of Budget Responsibility's latest fiscal forecast, released today, gives a withering assessment of Brexit's impact on the UK's economic and fiscal outlook.

Their forecast states that "the referendum vote to leave the EU appears to have weakened the economy. The fall in the pound has squeezed real household incomes and consumption"

Studies also "suggest that the economy was 2 to 2½ per cent smaller by mid-2018 than it would have been if the referendum had not been called."

Commenting, Layla Moran said:

"The OBR have delivered a massive slap down to Brexiters this afternoon, confirming that Brexit is a disaster for our economy before it’s even happened, and a disaster for the pound in your pocket.

"The Chancellor today hailed the end of austerity. But his announcement is deceptive: the government continues to pursue an ideological EU exit which their own independent body has today confirmed to have dampened business investment, squeezed household income and spending and shrunk our economy by around 2 and a half percent.

"To make matters worse, all the government have provided the OBR with to make their forecasts is the Chequers white paper - which has already been ripped apart by the Chancellor's own party and deemed unworkable by the EU. If this wasn’t so serious it would be laughable.

“This doesn’t have to be the path we take. It’s not too late for the government to sit up and listen to millions of people across the UK who want a final say on the Brexit deal with the option to stop this economic self sabotage and stay in our current EU deal.”

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