The Office for Budget Responsibility (OBR) has warned that public borrowing could double next year if the government fails to secure a Brexit deal.
According to the OBR, public borrowing could reach £60 billion if the UK leaves the EU without a deal. If the UK does secure an advantageous Brexit deal, borrowing is likely to reach £29.3 billion, the OBR stated.
It also said that a ‘disruptive or disorderly’ Brexit could ‘hit public finances much harder’, and cautioned that the impact of Brexit will ‘continue to unfold for many years’.
The UK is set to leave the EU on 31 October 2019.
Commenting on the findings, former Chancellor Philip Hammond said: ‘The report that the OBR has published shows that even in the most benign version of a no-deal exit, there would be a very significant hit to the UK economy.’