Thursday, August 03, 2023
The escalating cost of Brexit
As if Liz Truss had not done enough damage in her brief tenure as Prime Minister, the Independent reports that Liz Truss’s mini-Budget caused the UK’s EU divorce bill to soar by tens of millions of pounds because of the resulting crash in the value of the pound.
The paper says that Treasury documents show that the disastrous tax-cutting plan piled an extra £91m on the UK’s payments to the bloc required as part of the deal to leave:
The loss arose because the UK pays the settlement in euros, meaning the cost of meeting the payments rose sharply due to the hit the exchange rate took.
Half of the £91m came from an €855m payment, which cost £764m at a time when £1 was worth €1.12. By the time the UK paid the bloc in April, the exchange rate was £1 for €1.18, Reuters reported.
The negative impact on public finances of this Tory Government continues to escalate.
The paper says that Treasury documents show that the disastrous tax-cutting plan piled an extra £91m on the UK’s payments to the bloc required as part of the deal to leave:
The loss arose because the UK pays the settlement in euros, meaning the cost of meeting the payments rose sharply due to the hit the exchange rate took.
Half of the £91m came from an €855m payment, which cost £764m at a time when £1 was worth €1.12. By the time the UK paid the bloc in April, the exchange rate was £1 for €1.18, Reuters reported.
The negative impact on public finances of this Tory Government continues to escalate.
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Not only dpes the country have to deal with Conservative incompetance in running it but where money is concerned we have to deal with Hedge funders and people speculating/manipulating on the pound to make millions. for themselves at the countries expence.
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