No Deal Brexit will mean recession, warns United Kingdom budget watchdog

Clay Curtis
July 19, 2019

Ironically, this has led to calls in certain quarters for the new PM to prorogue parliament (end the parliamentary session) such that MPs can not prevent a no deal exit at the end of October since parliament will not be sitting.

Both Boris Johnson and Jeremy Hunt have promised to re-negotiate parts of the Withdrawal Agreement brokered by May and the European Union, and to take the United Kingdom out of the bloc without a deal if European Union leaders refuse to budge.

Members of parliament convening for the announcement of voting in the British House of Commons at Westminster.

Jeremy Hunt and Boris Johnson have been voted in to battle it out for leadership of the Conservative Party.

They also endorsed a requirement for ministers to make fortnightly reports on progress towards re-establishing Northern Ireland's collapsed, devolved executive and to give lawmakers an opportunity to debate and approve those reports.

The measure being voted on does not go as far as an outright block on Parliament being suspended.

On Thursday, lawmakers will be asked to give final approval to the measure, which has since been strengthened by Parliament's upper chamber, the House of Lords.

Those hoping to stop a no-deal Brexit believe this could require Parliament to be in session throughout the run-up to Brexit day, complicating any bid by Britain's new prime minister to "prorogue", or suspend, the legislature.

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Conservative MP Dominic Grieve was one of those who backed the proposal.

He said: "I'm going to be working with colleagues who share my view that no deal would be very bad for the country to try to make sure that the government can not push us into no deal without Parliament having consented to it".

Chancellor Philip Hammond, Justice Secretary David Gauke, Business Secretary Greg Clark and International Development Secretary Rory Stewart were among the Cabinet ministers who did not vote.

"It's quite hard unless they have a vote of no confidence and they don't want to do that because they would lose their seats because any Conservatives who voted against the Government on a vote of no confidence would be automatically deprived of the whip", he said.

"No doubt her successor will take this into account when forming their government", he said.

UK Prime Minister Theresa May arrives in Brussels to ask for another Brexit delay.

The news comes after the UK Office for Budget Responsibility published a damning report stating that a no-deal Brexit would force the UK into a recession and shrink the economy by two percent by 2020. "Together, these push the economy into recession, with asset prices and the pound falling sharply", the OBR said.

The OBR said that in this scenario there would be "heightened uncertainty and declining confidence" which would affect investment, while tariffs and trade restrictions with the European Union would "weigh on exports".

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