Fiscal Watchdog: Low productivity More Damaging Than Brexit Bill

Photo: Raul Mee (EU2017EE)

The fiscal watchdog of the United Kingdom said that low productivity is a more serious problem for the funds of the government compared to any divorce bill with the European Union.

The head of the Office for Budget Responsibility, Robert Chote, informed MPs on the Treasury Select Committee that it was “easy” to concentrate on the Brexit bill. However, he warned that low productivity was much more serious.

Chote said: “If it is an extra amount, you are talking here about presumably a one-off payment of some billions of pounds which would be dwarfed by the consequences of Brexit, positive or negative, for the long-term outlook for economic growth.”

Chote added that if the government deals with the productivity problem of the United Kingdom, this would “swamp” the consequences of withdrawing from the European Union.