London Daily

Focus on the big picture.

‘Economy 4% lower than if UK had remained in European Union’

‘Economy 4% lower than if UK had remained in European Union’

OBR chairman Richard Hughes said the effect of Brexit on the economy is on the ‘magnitude’ of the coronavirus pandemic and rising energy prices.
The economy is 4% is lower than if the UK had remained in the European Union, the chairman of the Office for Budget Responsibility (OBR) has said.

Richard Hughes said the effect of Brexit on the economy is on the “magnitude” of the coronavirus pandemic and rising energy prices, and the country is seeing the “biggest squeeze on living standards” on record.

He told the BBC’s Sunday With Laura Kuenssberg programme: “But we do expect, as we get past this year and we go into the next three or four years, that real income starts to recover.

“But it’s still the case that people’s real spending power doesn’t get back to the level it was before the pandemic even after five years, even by the time we get to the late 2020s.”

Mr Hughes said this is “partly” because the UK’s growth has been held back by supply constraints on “key drivers” of growth.

He spoke of the country losing 500,000 workers, combined with “stagnant investment” since 2016 and slowing productivity.

Asked how much stronger the economy would be if the UK had remained in the EU, he said: “We think that, in the long run, (Brexit) reduces our overall output by around 4% compared to had we remained in the EU.

“I’ve struggled to put it in any kind of sensible context.

“It’s a shock to the UK economy of the order of magnitude to other shocks that we’ve seen from the pandemic, from the energy crisis.”
Newsletter

Related Articles

London Daily
0:00
0:00
Close
Homeless Man Turns in Wallet with 2,000 Euros at Amsterdam Station
Apple Faces EU Charges Over Digital Markets Act Violation
Macron Warns of Civil War Risk as French Elections Approach
Julian Assange Freed After US Plea Deal
Chaotic Portugal Win Over Turkey at Euro 2024
Global Headlines: Hajj Heatwave Tragedy, Flynn's Family Enterprise, and Rising Geopolitical Tensions
Political Shifts in France, Legal Battles in the UK, and Public Protests in Israel
UK's Richest Family Convicted for Exploiting Servants
Hollande Declares End to Macron’s Political Ascendancy
Hindujas Appeal Swiss Court's Human Trafficking Verdict
Prince William Celebrates Birthday at Taylor Swift Concert
Singapore to Implement Screen Time Regulations for Children
Hello and welcome back. Here we are with your latest news update from around the world.
Hello and welcome back. Here are today's top stories from around the world, you don't want to miss:
UK PM Sunak and the Election Betting Scandal
Climate Activists Target Taylor Swift's Private Jet in UK
United States Bans Kaspersky Antivirus
US to Supply Taiwan with Suicide Drones Amid Rising Tensions with China
Bodyguard of UK Prime Minister Arrested for Alleged Election Betting
Global Displacement Crisis: Record Numbers in 2023
Muslim Community Leader Criticizes Nigel Farage for Undermining Muslims
Melinda Gates Discusses 'Horrible' Divorce from Bill Gates
Child Obesity Surge in England: A Deep Concern
U.S. Sues Adobe Over Hard-to-Cancel Subscriptions
Deadly Heat Wave Claims Dozens of Lives During Hajj Pilgrimage in Mecca
Here are today's top worldwide stories you don’t want to miss:.
World’s Largest Pilot Union Calls to Eliminate Terms Like ‘Cockpit’ and ‘Manpower’ for Equity
Woman Suing UK Intel Services Denies China Spy Allegations
Iran Sentences Nobel Laureate Narges Mohammadi to 1-Year Prison Term for Propaganda
News roundup
Good day, everyone! We've got some gripping stories for you today, spanning from the Middle East to Europe, and even a touch of Hollywood.
Britain’s Refugee Visa Rules Stranding Children in War Zones
UK Elections Predict ‘Electoral Extinction’ for PM Sunak’s Conservative Party
Italian Activist Ilaria Salis Returns Home After Election to European Parliament
Good morning!
England Faces Serbia in Euro Opener with Defensive Concerns
Dermatologist Warns Against Sunbed Usage
Fake Pro-Reform UK Social Accounts and Their Influence on Elections
UK Man Jailed for Non-Consensual Condom Removal
Reform UK Surpasses Conservatives in Historic Poll
US, Britain, Canada Accuse Russia of Interference in Moldova’s Election
Taylor Swift Fans Create Seismic Activity in Edinburgh
Sunak Aide Under Investigation for Election Bet
Labour Leader Starmer Focuses on Wealth Creation for Upcoming UK Elections
G7 to Use Frozen Russian Assets for $50 Billion Ukraine Aid
Anti-Israel Irish MEP Clare Daly LOST her seat in the EU Election
Johnson & Johnson Settles Talc Safety Claims for $700 Million
EU Urged to Welcome Skilled Russians to Weaken Putin
EU Elections Overview: Far-Right Gains and Major Political Shifts
Israel Rescues Four Hostages from Gaza
×