Will UK budget deficit skyrocket following Brexit?
A catastrophe, a tsunami, a return to austerity. Britain’s budget deficit is likely to more than double to around 100 billion pounds if the country leaves the European Union without a deal, a leading think-tank said on Tuesday. The Institute for Fiscal Studies (IFS) predicted borrowing would rise to 92 billion pounds - equivalent to 4% of national income - by 2021/22 under a “relatively benign” no-deal Brexit scenario , in which there are no major delays at borders. Even then, the economy would still enter recession in 2020, the IFS said in an annual assessment of the public finances. IFS added that total debt would soar to 90% of national income. "The government is now adrift without any effective fiscal anchor," said IFS director Paul Johnson. The Treasury said any decisions would be made "with a view to the long-term sustainability of the public finances ". If the government undertook enough fiscal stimulus to stop the economy contracting - roughly 23...