Britain half a trillion pounds poorer than thought, official figures show

BRITAIN is £490 billion poorer than thought and no longer has any reserve of net foreign assets to help protect against any Brexit damage.

The ONS revision of the national accounts means the UK’S net international investment position has collapsed from a surplus of £469billion to a net deficit of £22 billion – a shift equivalent to a quarter of GDP.

The revised figures show the country had overestimated its international assets and owes far more to foreign investors than previously thought. “Half a trillion pounds has gone missing,” said Mark Capleton, the UK rates strategist at Bank of America. The effective write down in the value of “UK plc” could make it harder to defend against a run on the pound after Britain leaves the EU. It comes as Brexit talks in Brussels reach a crucial stage. Treasury officials are already braced for “gloomy” OECD forecasts, due in a yearly update on the UK economy tomorrow.