No-deal Brexit would lead to significant disruption — Hammond

LONDON, A no-deal Brexit would deliver a significant short- to medium-term reduction in the productive capacity of the British economy, Chancellor of the Exchequer Philip Hammond said on Wednesday.

Delivering the Spring Statement 2019 to the House of Commons, Hammond added the exit would cause a “smaller, less prosperous economy in the long term, than if we leave with a deal”.

He called on MPs to set aside differences and support Prime Minister Theresa May for the country’s supreme interest.

He noted that the parliament’s approval of leaving the EU would save more than 26 billion pounds (USD 34 billion).

Hammond warned that the exit from the EU with no deal would cause higher unemployment and prices, and lower wages.

The Office of Budget Responsibilities reduced the growth forecast for the UK’s economy this year from 1.6 to 1.2 percent, he pointed out.

The House of Commons rejected on Tuesday May’s amended draft on leaving the EU. As a result, the government asked for another vote this evening on leaving the EU with no deal.

If MPs reject the government’s request, another voting will be conducted on Thursday on delaying leaving the EU planned on March 29 to another time.

Source: Kuwait News Agency