Brexit fallout to cost UK extra 122 billion pounds over five years

November 24, 2016 00:04

Britain must borrow an additional 122 billion pounds over five years as it exits the European Union, the public finances advisory body said, forcing the government to shelve plans to balance the books by 2020.

The extra borrowing, worth $152 billion, covers the period until early 2021, and covers direct

and indirect costs of Brexit, explained the Office for Budget Responsibility.

The OBR pinpointed 59 billion of additional borrowing directly caused by Brexit, including 16 billion as a result of lower migration and 18.1 billion due to lower productivity growth.

Economic secretary to the Treasury Simon Kirby said he "didn't necessarily accept" the prediction of extra borrowing caused by lower migration, but accepted it would "have an impact on GDP."

"We need to be clear that the British people voted on June 23 to leave the EU because they wanted control...There are positives and negatives," he told a foreign press briefing.

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