Hammond’s Brexit chaos is ‘damaging UK business’
PHILIP Hammond’s flip-flopping over Brexit has damaged confidence in the British economy, a leading businessman has warned.
John Longworth, the former director of British Chambers of Commerce, called on the Chancellor to be sacked over his negative Brexit stance.
Mr Hammond came under fire too after the governor of the Bank of England Mark Carney cast doubt on Britain’s prospects, saying wages are being squeezed and growth remains sluggish.
Mr Longworth said: “Maybe we ought to get a new Chancellor. We ought to have a Chancellor who will actually embrace the economic opportunities that Brexit provides.
“Flip-flop Phil has changed his mind at least twice on a fistful of key issues concerning Britain, the EU and the economy.
“Instead of trying to make Britain poorer by preserving a failed EU economic model he should embrace a new model economy which will make Britain richer.
“To create business certainty, this means announcing in the autumn a five-year post-Brexit plan implementing everything Britain can do after Brexit that being in the EU has prevented us from doing.”
Concerns were also raised that negativity by Remainers, including Mr Carney and Mr Hammond, is damaging the economy. The anger surfaced after Mr Carney suggested yesterday that Brexit is harming the economy.
He said that British growth and business investment are below where they should be in the current international environment.
Mr Carney said the pressure on families would continue, with Britain in the teeth of the income squeeze and real wages at their weakest since the middle of the 19th century.
He said: “Growth remains sluggish in the near term as the squeeze on households’ real incomes continues to weigh on consumption. Even a limited pick-up in growth is likely to have consequences for the stance of monetary policy.”
Mr Carney hinted at future interest rises saying the Bank believes households and the wider economy could withstand a rate hike “if appropriate”. However, interest rates were kept on hold at 0.25 per cent yesterday.
The report angered Brexiteers frustrated at the way some, including Mr Hammond, have seemed to undermine Brexit. Lib Dem leader Sir Vince Cable, exchancellor George Osborne, a large number of Labour MPs led by Chuka Umunna, and groups such as the CBI have been accused of being negative about Britain because they are “embittered” by the referendum result.
Richard Tice, co-chairman of Leave Means Leave, said: “The reason that business investment and growth are not as high as they should be is not because of Brexit but because of the constant negativity by senior figures, including Mark Carney, Philip Hammond, Vince Cable, Chuka Umunna and others, who are pushing their Remainer Project Fear agenda through their friends in the media which is now inevitably undermining confidence in the country.
“The referendum debate is over. We need influential people talking about how to make a success of Brexit not trying to destroy the country because they are embittered about losing the debate.”