Borrowing by the British government, leaving without agreement = double the assumption = British Institute of Finance

[London 8 Reuters]-According to the annual report of the British Institute for Finance (IFS), if the UK leaves without agreement with the European Union (EU), the government borrows about £ 100 billion ($ 123 billion) And it is expected to expand to double the level currently assumed.

IFS expects government borrowing to reach 92 billion pounds by 2021/22 in a scenario of a “relatively small impact” disengagement scenario that does not disrupt the logistics so much at the border.

However, IFS expects the UK economy to enter into a recession under that scenario.

If the government spends about 23 billion pounds in FY20 and FY21 as an economic measure, the annual borrowing is expected to reach 102 billion pounds.

IFS Vice-President Carl Emerson said that “if you leave without an agreement, you will need to spend in the short term, and then you will return to austerity soon”.

In the long run, IFS explained that without consent, public sector spending will shrink and tax rates will rise.