US tariffs could wipe out the chancellor’s £9.9 billion fiscal buffer, according to the independent budget forecaster.
Richard Hughes, the chairman of the Office for Budget Responsibility, said that if the US chose to impose 20 per cent in tariffs on trade partners around the world and the UK retaliated it would reduce UK economic growth by 1 per cent.
The UK’s economic growth has already been downgraded to 1.9 per cent next year, so a further 1 per cent would be a big hit, Hughes said.
He added that the knock-on effect of economic growth effectively being halved would be lower tax revenue, which would hit government spending plans and lead to inflation if prices rose.
Billions of euros have been wiped off the
Visited 1 times, 1 visit(s) today
