Menu

Login to access your account

Thu, 2 April 2020

Personalise Your Politics

Subscribe now
The House Live All
Coronavirus
Brexit
VentilatorChallengeUK consortium has the skills and tools to make a difference and save lives Member content
Coronavirus
Member content
By Confederation of Timber Industries
Economy
Coronavirus
Press releases

Bank of England governor Mark Carney says risk of no-deal Brexit ‘alarmingly high’

Bank of England governor Mark Carney says risk of no-deal Brexit ‘alarmingly high’
2 min read

The chance of Britain crashing out of the European Union is now “alarmingly high”, Mark Carney has said.


The Bank of England governor said that despite “real progress” from businesses, government agencies and the Bank in preparing for the outcome, the institution continued to expect a shock to the economy.

In December, he told MPs that a no-deal Brexit could see average food shopping bills rise by 10%, with the economy shrinking by 8%, house prices crashing 30%, unemployment nearly doubling and inflation spiralling to 6.5%.

On his view from August that Britain faced an “uncomfortably high” chance of leaving without a deal, he told Sky News: “Unfortunately I think it proved accurate”.

The governor continued: “It's alarmingly high now. We're in a situation where the expressed will of parliament is for some form of deal, so to put it in the double negative: parliament is against no deal.

“The government, as expressed by the prime minister, is against no deal, the European Union is against no deal, and yet it is a possibility - it is the default option.

“So no-deal would happen by accident, it would happen suddenly, there would be no transition - it is an accidental disorderly Brexit."

However Mr Carney said while there are “lots of things to worry about” regarding a sudden exit from the bloc, “the financial sector is not one of them”.

He added that businesses still needed a transition period to adjust.

Elsewhere the former Bank of Canada chief blasted claims by hardline Brexiteers that the UK could fall out on WTO terms and maintain zero tariffs as “absolute nonsense”, which he said “needs to be called out”.

Britain is due to leave the EU on 12 April unless it can pass the Government’s withdrawal agreement beforehand, which would in turn push back exit day until 22 May so that legislation can be enforced.

Read the most recent article written by Nicholas Mairs - Public sector workers to get 5% pay rise from April if Labour wins election

Categories

Economy
Partner content
The Cybersecurity Summit

Join Cyber Security and ICT professionals from across central government, local government, law enforcement and wider public sector, to tackle key issues at the heart of UK public sector.

Find out more