The governor of the Bank of England, Andrew Bailey, has warned that the economic cost of a no-deal Brexit would be bigger in the long term than the damage caused by Covid-19.
Speaking to MPs on the Commons Treasury committee, he said the fallout from the pandemic and the second national lockdown in England was having a much bigger short-term impact on the economy.
However, “the long-term effects, I think, would be larger than the long-term effects of Covid. But … it would be better to have a trade deal, yes, no question about it.”
No-deal Brexit would not cause as much damage as inflicted by the pandemic earlier this year. However, the LSE modelling estimates a reduction in GDP worth 8% over a decade compared with remaining in the EU.