London.- british Finance minister, Philip Hammond, today acknowledged before the Parliament that as a result of the vote in favor of the exit of the Uk from the European Union (Brexit) will slow down the economic growth, while prices will rise, and will increase the debt.
Due to the uncertainties caused by the “Brexit”, the growth forecast for 2017 has to be reduced from 2.2 to 1.4 percent, “which effectively is less than we had hoped,” said Hammond to present the new general budgets of the State, reported DPA.
According to current estimates, the indebtedness of the british State, will increase from 84 % of the gross domestic product (GDP) in fy 2015/16 to almost 90 % of GDP in the financial year 2018/19.
For this reason, the holder of Finance also abandoned the goal set by his predecessor, prior to the launch of the referéndo about the “Brexit” on the 23rd of June, to achieve a budget surplus by the end of this decade.
on the other hand, Hammond confirmed that the british Government will maintain the plan to reduce the corporate tax from 20 to 17 percent in 2020. On Monday, the first minister Theresa May had admitted that his Government might announce a reduction even larger of the tax to enhance the competitiveness of the british economy.
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