Brexit blows $31 billion hole in British budget
The U.K. government is facing a £25 billion ($31 billion) hole in its finances because of Brexit, the Institute for Fiscal Studies said Tuesday.
Slowing growth and lower tax revenues will hit the budget and lead to higher borrowing, the U.K.'s leading independent economic think tank said in a research paper called "Winter is Coming."
Government tax revenues will fall by as much as £31 billion ($38.4 billion) by 2019, if there is no major policy change. If it stops all payments to the European Union, the government could save £6 billion ($7.4 billion) a year.
But those potential savings won't be anywhere near enough to cover for the drop in revenue.
Brexit blows $31 billion hole in British budget - Nov. 8, 2016
The U.K. government is facing a £25 billion ($31 billion) hole in its finances because of Brexit, the Institute for Fiscal Studies said Tuesday.
Slowing growth and lower tax revenues will hit the budget and lead to higher borrowing, the U.K.'s leading independent economic think tank said in a research paper called "Winter is Coming."
Government tax revenues will fall by as much as £31 billion ($38.4 billion) by 2019, if there is no major policy change. If it stops all payments to the European Union, the government could save £6 billion ($7.4 billion) a year.
But those potential savings won't be anywhere near enough to cover for the drop in revenue.
Brexit blows $31 billion hole in British budget - Nov. 8, 2016