BREXIT BUDGET BOMBSHELL: OBR Says Cost Of Deal £28bn And Rising!
Official figures published as part of the Budget report reveal the staggering cost of Theresa May’s planned ‘transition period’. The Office For Budget Responsibility projects that Britain will have to pay at least another £28 billion to Brussels in the two years after it has officially left the EU in March 2019.
In her infamous Florence speech, Mrs. May offered to pay into the EU Budget until it’s current period ends, in 2021 in exchange for a ‘transition period’ in which the Britain leaves the EU in stages. Government sources initially claimed that the net cost of paying until the end of the budget period was around £20 billion, but the OBR has said that it will instead be £13.8 billion in 2019/20 and £14 billion in 2020/21 and it has warned that the potential cost of a transition period is growing and is already £2.1 billion more than it told ministers in March.
Remember now that this is the initial offer Mrs. May made in Florence and therefore DOES NOT include the money promised more recently for the start of trade talks. Any consideration of this figure and the impact paying it will have on fiscal policy and the wider economy was TOTALLY ABSENT from the Budget, a point noted by the Insititute For Fiscal Studies yesterday.
The fact is this, the government is involved in a massive cover-up of the true economic implications of its current course of action. Conservative MP Peter Bone is totally right to say that now is the time for “transparency and honesty”, something that is totally lacking from this government.
Massive question marks now exist. Where will this money come from? What will be cut? Will we have to borrow money and if so, how much? What will be the impact on growth and government debt? All of these questions need to be answered by the government and we all need to press them to reveal the true cost of there disastrous appeasement of the EU.