Davis: Pound drop ‘may not be bad’

A SHARP fall in the value of the pound in the event of a No Deal Brexit ‘might not be such a bad thing’, David Davis has claimed.

The former Brexit secretary called on the Government to deliver a ‘probusiness, pro-trade, pro-environment’ exit from the EU, with the economy stimulated by tax cuts.

Referring to predictions that sterling could plummet by 0 per cent if Britain leaves at the end of March without an agreement, Mr Davis said: ‘Is this such a bad thing?’

He added: ‘Our goods will become 0 per cent more competitive on the global market and our EU competitors’ goods would be less competitive.’

A fall in the value of the pound means British goods will become cheaper overseas, making it easier to export abroad. But we will also pay more for imported goods, squeezing household budgets and pushing up inflation.