Pound at risk after a disorderly Brexit
The UK could experience shortages of vital imports, a sharp fall in the pound and higher prices in the shops in the event of a disorderly Brexit, says the Office for Budget Responsibility (OBR).
The fiscal watchdog issued the warning on Thursday.
A no-deal Brexit could hit the British economy hard, leading to higher budget deficits and government debt, the office said.
“A disorderly exit is not impossible and it could have a severe short-term impact on demand and supply in the economy and on the public finances,” the OBR said. “UK asset prices could fall sharply which, together with heightened uncertainty, would cause households and businesses to rein in spending.”