Cable predicts UK ‘Brexit crunch’

The UK will be hit by a “Brexit crunch” unless the government changes its stance on EU withdrawal, Liberal Democrat leadership contender Sir Vince Cable has insisted.

The former business secretary claimed that if Prime Minister Theresa May continues to push for an “extreme Brexit” outside the single market and customs union it will lead to heavy job losses and a slump in living standards.

The Lib Dem treasury spokesman said: “A decade ago, the country faced a credit crunch from which we are only just starting to recover.

“We are now faced with the threat of a Brexit crunch, but which this time would be entirely selfimposed.

“Immediately after the referendum, Brexiteers smugly observed that the economy had not caved in, despite the accusations of so-called ‘Project Fear’. This totally misses the point.

“The warnings from experts including the IMF, OECD and the Treasury were about the long-term health of our economy, not short-term fluctuations.

“And just a year after the vote to leave, their predictions are coming true.

“We have seen a collapse in the pound, dwindling consumer confidence and a stagnating economy.

“Even the Brexiteers’ much hoped-for exporting boom has failed to materialise, with our trade deficit the same size as it was a year ago.”