Chancellor of the Exchequer Philip Hammond came under renewed criticism from pro-Brexit lawmakers today, for warning that leaving the European Union without an exit deal would hit public finances, underlining discord in the ruling conservative party.
According to reports, Hammond, who is seen as one of the most pro-EU members of Prime Minister Theresa May’s cabinet, has long been a target for the so-called Brexiteers who say the finance ministry is too pessimistic about Britain’s future outside the EU.
In a letter published on Thursday, Hammond referred to forecasts made by his department in January, highlighting that under a no-deal scenario, borrowing would be about 80 billion pounds a year higher in 15 years’ time as the economy grew more slowly.
He also outlined specific sectors and regions that would be hit particularly hard.
However, the letter provoked an angry response from the leader of an influential group of pro-Brexit lawmakers within May’s conservative party, who said the forecasts were wrong and a no-deal Brexit would not be as damaging