Daily Management Review

No-Deal Brexit Endangers The U.K.’s Future: Hammond


Amid the race to win the seat of Britain’s Prime Minister, the British Finance Minister warns that leaving without a deal from the bloc should not be an option.

Source: flickr.com; (CC BY 2.0)
Source: flickr.com; (CC BY 2.0)
The Finance Minister of Britain, on Thursday, May 30, 2019, urged his party members contending to be the successor of Theresa May as the British Prime Minister to mellow down “irresponsible spending pledges”, whereby warning that a “no-deal Brexit” will nothing less than a danger to the country’s economy.
The Brexit crisis grows ever deeper with the prospect of May’s resignation, while the search for the next candidate remains as the end of July draws ever nearer. As a result, with the each passing days, the chances of confronting the EU to the extent of “potentially” snapping “parliamentary election” seem to be growing. Boris Johnson, the favourite of the bookmakers, eyeing May’s position, is of the opinion that irrespective of a deal, Britain’s exit from the bloc shouldn’t delay beyond October 31.
While, BBC quoted the Finance Minister, Philip Hammond, saying:
“We need to get the spectre of a no-deal exit off the table. Leaving with no deal would be a very bad outcome for the economy”.
Furthermore, he also added:
“I’m not sure that people necessarily have understood what a risk we would be taking, not only with our economy but also with the future of our precious United Kingdom if we left with no deal”.
The political failure for the Brexit which was scheduled for March 29, 2019, affected auto-manufacturing industries to the extent that factories had to be shut down last month. Without a deal Britain’s exit from the bloc will be abrupt. Moreover, the governor of BoE, Mark Carney thinks that if Britain exits from the bloc without any deal, it could replicate the “the 1970s oil shock” situation. In fact, the government under Theresa May have been vocal about the “disruption a no-deal Brexit would unleash” on the economy practically affecting everything from “pet tourism to the import of crucial medicines and supply chains that criss-cross Europe and beyond”.
However, the supports of Brexit see the disruption to be a short-term issue as they consider Brexit would bring “long-term” benefit to the U.K., the country would “thrive outside what they cast as an undemocratic and excessively bureaucratic project dominated by Germany”.
There are eleven “Conservative lawmakers” running to win May’s seat, while in question to being May’s successor, Hammond, without dismissing the possibility of entering in the next British Minister’s race, agreed that his views on Brexit makes him “unpopular with some sections of the party”. In his words:
“I hope this contest does not degenerate into a competition to see who can make the biggest spending or tax cutting pledges. The Conservative Party has a very strong reputation, well deserved, for being fiscally responsible.”
He also said:
“I’ve been in parliament for 22 years and I have never once voted against the Conservative whip so it’s not something I would do lightly or enthusiastically. But I am very clear that the national interest trumps the party interest”.