UK economy is thriving after Brexit vote, admits Remainer ex-minister
a REMaIN- backing former Treasury minister yesterday admitted the economy is thriving despite the doom- laden forecasts of Project Fear.
Lord O’Neill, a close ally of George Osborne, said the UK was better placed to deal with Brexit than he feared.
any negative impact of leaving the EU would be ‘dwarfed’ by the brightening global outlook, he added.
His surprisingly upbeat comments came as the International Monetary Fund (IMF) stuck to its gloomy tone – despite hugely underestimating the resilience of the UK economy since the referendum.
Brexit supporters also seized on Lord O’Neill’s change of heart.
Speaking to the BBC ahead of the World Economic Forum in Davos, he praised the ‘robust’ economy. ‘That is because some parts of the country, led by the North West, are actually doing way better than people seem to realise or appreciate,’ he said. ‘The rest of the world is also doing way better...’ asked if he had been too pessimistic about Brexit, the former Goldman Sachs economist said: ‘I’m almost embarrassed to accept that it might sound like that. Because of course in principle I share the views of many that Brexit is a really weird thing for the UK to impose on itself...
‘and maybe this [better global growth] means the country’s going to be able to cope with Brexit better than certainly somebody like me might have thought some time ago.’ He argued that other factors such as boosting output in the so-called Northern Powerhouse – a project spearheaded by Mr Osborne – were more important than Brexit for the economy.
Lord O’Neill, who quit the Government in 2016 after the referendum, added: ‘Brex- iteers are going to be like the cat with the cream.’ The IMF was more gloomy, however. It forecast growth of 1.5 per cent this year and next year – putting Britain behind the US, Germany and France. But critics pointed out that the IMF predicted growth of just 1.1 per cent for 2017 – but now believes it grew by 1.7 per cent.
Brexit campaigner John Longworth, the former head of the British Chambers of Commerce, said: ‘It is interesting that hitherto Remainers are beginning to recognise that Project Fear was completely flawed.’
a Treasury spokesman said: ‘We are building a Britain that is fit for the future by improving skills, backing innovation and investing in infrastructure.’
a veteran central banker last night said the world financial system was dangerously stretched amid warning signs that echo the last economic crash. William White, a top official at the Organisation for Economic Co-operation and Development, said years of emergency cash had left markets addicted to debt. He told the Daily Telegraph: ‘The lesson has somehow been forgotten.’
‘Project Fear was completely flawed’
AS a Treasury minister, Lord O’Neill was an integral part of then-Chancellor George Osborne’s team at the height of Project Fear. He was fervently anti-Brexit and subscribed to the theory that it would be a disaster for our economy.
Yesterday, he performed a remarkable U-turn. Far from the ‘immediate and profound economic shock’ predicted by his former boss, Lord O’Neill now believes Britain won’t suffer at all from leaving the EU. He believes growth will be higher than forecast and admits to being ‘embarrassed’ about his previous pessimism.
Of course, he’s not the first leading economist to change his tune over Brexit. Just last month the Centre for Economics and Business Research conceded that ‘ fears had been exaggerated’ and ex-Treasury mandarin Lord Macpherson – an architect of Project Fear – admitted the economic impact should be ‘limited’.
But while Heaven may rejoice at these repenting sinners, other Remoaners still relentlessly talk down Britain’s prospects. The slavishly pro-EU Confederation of British Industry, for example, is still warning of supposedly dire consequences if we leave the single market.
Yet for many of its members, business is booming. Orders are at their highest for 30 years and exports at their best for 20 years. Does this suggest we are on the edge of an economic abyss?
But let’s not forget, the CBI supported Britain’s disastrous entry into the European Exchange Rate Mechanism and wanted us to join the euro. With such an ignominious track record, we should take anything it says with a pinch of salt. IN an era when footballers earn telephone number salaries and change their clubs as often as their flash cars, it’s comforting to remember a modest, loyal gentleman of the game. Former England captain Jimmy Armfield played for unfashionable Blackpool throughout his career, earned a pittance by today’s standards and was more likely to be found in his local church than falling out of a nightclub. A hugely popular broadcaster after hanging up his boots, he was generous, unassuming and universally admired. We salute his passing.