McFadden – Despite spending review, No Deal would mean second wave of austerity - People's Vote

McFadden – Despite spending review, No Deal would mean second wave of austerity

Commenting on the new Chancellor Sajid Javid’s spending review today, Pat McFadden MP, leading supporter of the People’s Vote campaign, said:

“A decade ago, David Cameron and George Osborne promised to set up the Office of Budget Responsibility to ensure that all future ‘fiscal events’ were rooted in independent forecasts of the economic situation.

“It has taken Boris Johnson and Sajid Javid just six weeks to rip that up. Today the Chancellor produced a fantasy spending round based on forecasts made in the Spring, based on Theresa May’s Brexit deal, and which take no account of how the Government’s policy on Brexit and its attempts to force No Deal on the country will leave him with lower revenues, less money to spend and bigger problems to patch-up.

“The reality of their undemocratic No Deal will be years of uncertainty and a drag anchor on growth.  It’s not just about the initial shock – it’s about the longer term effect as negotiations and counter-negotiations drag on.

“Already the pound is trading at its lowest level for decades and manufacturing activity is at a seven year low. The myth is that no deal will “get Brexit done” but if it happens it will just mark the start of a new phase in this process. 

“As Paul Johnson of the IFS said this morning, a disastrous No Deal would mean a second wave of austerity.

“Fantasy promises of extra spending are not going to be trusted by voters who can already see that Boris Johnson will say or do anything to get his way, only to break his promises the first chance he gets.

“Boris Johnson repeatedly called for the Brexit decision to be put back to the people today.  If that’s what he wants the right way to do it is for him to make his choice about the manner of our leaving and put it to the people in a free-standing referendum rather than the Brexit general election he craves.”

/ends