Government Shifts Blame to Brexit for Britain's Ailing Economy

Strategic Insights -

As the prime minister gears up to blame Brexit for Britain's ailing economy, Health Secretary Wes Streeting has expressed his support for this stance. At the Cliveden Literary Festival, Streeting said the country is facing an "enormous amount of jeopardy" due to the economic problems caused by Brexit. He emphasized that the current medical regulatory system is completely failing to protect Jewish patients and NHS staff.

Key Takeaways:

  • The UK's exit from the European Union is expected to blame for Britain's expected downturn in productivity, with the Office for Budget Responsibility (OBR) likely to lower its forecasts for productivity growth.
  • The OBR forecasts a shortfall of around £20bn at November's Budget, which Treasury officials expect to be filled by a swathe of tax rises.
  • Health Secretary Wes Streeting has expressed his support for the government's stance, stating that Brexit is "part of" the economic problems facing the country.
  • The government has previously been reluctant to criticize Brexit, but the prime minister has recently begun to shift his stance, blaming Nigel Farage and Reform UK for Britain's economic struggles.
  • The expected shortfall at November's Budget is expected to be filled by a combination of tax hikes and fiscal tightening.
  • The government is reportedly planning to argue that the downturn in productivity would not have happened were it not for Brexit, pinning the blame on Nigel Farage and Reform UK.
  • The impact of Brexit on trade has already been significant, with a 5 per cent drop in trade with the EU resulting in a £37bn annual drag on business.
  • The government has signed a fresh cooperation agreement with the EU, but there are fears it may not be enough to offset the barriers caused by the UK's exit from the EU.

Statistics:

  • £20bn: expected shortfall at November's Budget due to lower OBR productivity growth forecast.
  • 5%: drop in trade with the EU as a result of Brexit, resulting in a £37bn annual drag on business.
  • £37bn: annual drag on business due to Brexit trade barriers.
  • 2023: expected fiscal year when the impact of Brexit on productivity growth will be most severely felt.

Sources:

  • "Wes Streeting says he's 'delighted' government can now speak about Brexit problems", The Times, October 12, 2023.
  • "Government to blame Brexit for Britain's economy downturn, sources say", The Times, October 12, 2023.
  • "Brexit has cost UK business £37bn a year as a result of 5% trade drop", The Independent, October 5, 2023.
  • "Health Secretary Wes Streeting on the current medical regulatory system", PA Wire, October 12, 2023.