Britain facing another recession over Brexit: SNP

LONDON: The UK is on the brink of another recession with the Prime Minister “driving the economy over a cliff” to please Brexiteer backbenchers, the SNP said.

The party’s Westminster leader Ian Blackford said there are already indications the UK is facing a slide into recession, and that the blame “will lie at the door of this Brexit-obsessed government that is incapable of doing their day job”.

Speaking in the house of Commons during Prime Minister’s Questions, Blackford (Ross, Skye and Lochaber) said: “The dark clouds of Brexit are with us. “Will the Prime Minister continue to ignore all the warning signs of recession?”

Prime Minister Theresa May responded by saying the UK economy is performing well, with record low unemployment and higher growth than is being experienced in other leading countries. May said: “I am very pleased to see that we actually have the best record in the G7 in terms of growth, we have the longest quarterly period of growth of any of the countries in the G7.

“We also, I have to say, we have record numbers of people in employment, a record low in unemployment, and investment in our economy. This is an economy that is doing well, but it could really take off, and it would have done if you had actually voted for Brexit and voted for the deal we put before this House.”

Blackford, however, said declining car production and a “near stagnation” in the services sector are signals that there are big problems. Blackford added: “Perhaps we can look at the facts. Record foodbank use. Ernst and Young tell us that the Brexit bill so far for financial service companies alone is as much as £4 billion.

“Foreign investment projects into the UK have dropped 14 per cent, the lowest level in six years. Car production fell 15.5 per cent in May, the 12th straight month of decline. UK retail sales have experienced their worst June on record.

“The near stagnation of the services sector in June is one of the worst performances seen over the past decade. We have the evidence. Your legacy will be driving the UK economy over the cliff into another recession. Haven’t you sacrificed the jobs and livelihoods of people across the UK in order to please your Brexiteer backbenchers?”

Blackford urged May to take no-deal off the table, and “take positive action” to restore confidence in the economy. He added: “The blame for any recession will lie at the door of this Brexit-obsessed government that is incapable of doing their day job.”

May said Blackford and others could have taken no-deal off the table by voting for her deal. She said the SNP should focus on forecasts showing Scotland’s economy will grow slower than the rest of the UK under an SNP government.