The Bank of England governor has issued a warning over the economic harm of Brexit as sluggish growth figures underscore the challenges faced by the new Labour government.
Speaking at the Mansion House dinner in the City of London on Thursday evening, Andrew Bailey said he took no position on Brexit “per se”, but added: “I do have to point out consequences.”
He said Brexit had “weighed” on the economy, pointing out in particular the impact of Brexit on the UK’s trade in goods. “It underlines why we must be alert to and welcome opportunities to rebuild relations while respecting the decision of the British people,” he added.
Bank governors traditionally refrain from wading into contentious political issues, but Bailey’s predecessor, Mark Carney, did warn about the potential economic impacts of Brexit before the referendum in 2016.
Since the UK exited the customs union, economic growth has been sluggish, with the latest figures showing growth slowed to 0.1 per cent between July and September.
Keir Starmer’s government has put economic growth as one of its key priorities in office, and has pledged to deepen cooperation with the EU.
Labour is opposed to re-entering the EU’s single market or customs union. Instead, the government hopes to win more modest changes such as mutual recognition of professional qualifications and a veterinary agreement that could alleviate the need for checks on food exports.
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