Government borrowing will rise by an extra £188m a week, import and export growth will be slowed for a decade thanks to Brexit, while the fall in the value of the pound will continue for the foreseeable future, the Office of Budget Responsibility has predicted in its first post-referendum summary of the British economy’s predicted performance over the coming years. In addition, working people will be worse off by £1000 a year by 2020 thanks to both the weakened economy and government policy.
The government’s minimum wage increases are expected to put further pressure on structural unemployment, while the financial service sector is expected to grow at a slower pace.
The OBR, which despite being tasked with providing independent analysis of Britain’s public finances, has received no further details of the government’s Brexit objectives than the general public, has assumed that the government will secure a trade deal with the European Union and will reduce migration but not to the promised “tens of thousands” net target.
