Jacob Rees-Mogg ignores doom-mongering economy predictions to give his OWN Brexit budget
JACOB Rees-Mogg has called on the Government to end its reliance on “pessimistic” official Brexit forecasts and heed the findings of an “overwhelming positive” new study released today.
The leading Brexiteer said a “classic free trade” approach of fewer trade barriers, less regulation and lower taxes will allow the economy to flourish - which could lead to an extra £135billion in the Government’s coffers between 2020-2025.
Speaking today at the launch of the Economists for Free Trade (EFT) report entitled ‘From Project Fear to Project Prosperity’, Mr Rees-Mogg said the expert panel had “have done what the Treasury ought to have done” and modelled Brexit on a “free trade approach”.
He also called on Chancellor Phillip Hammond to invest a further £250million - on top of the £250million already earmarked - into preparing new systems such as border controls to prepare for a ‘no deal’ Brexit.
And he urged Mr Hammond to set aside £2billion to deal with any other issues that may arise during the divorce, though he added that sum would “probably not be needed.”
I confidently believe that over the medium term the UK's fiscal prospects are much better than those that will be revealed to you soon
The prominent Leave campaigner’s challenge comes just days before the Chancellor is due to unveil his Budget.
Mr Rees-Mogg he said the official figures from the Office for Budget Responsibility (OBR) were inherently pessimistic because the data it was using was based on “false assumptions” provided by the Treasury.
He said: "I confidently believe that over the medium term the UK's fiscal prospects are much better than those that will be revealed to you soon in the OBR’s short-term projections.
"It does its work worthily and reputably, but on the basis of false assumptions given to it by the Treasury."
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He pointed to forecasts in the EFT report which predicted “overwhelmingly positive” economic growth for Britain, provided the Government takes the right steps.
These include tearing down trade barriers for UK-firms, a drop in corporation tax and “reducing the burden of tax on businesses and individuals.
He said: “Brexit will provide the opportunity to signal to the world that Britain is open for business.”
And, according to the EFT report, an additional £40billion a year could be raked in annually from 2025, including £10billion a year saved by no longer having to pay into EU budgets.
However the EFT’s findings are sharply at odds with most mainstream economists, who have warned Britain will experience lower growth and greater pressure on public finances as a result of the Leave vote.
The outspoken backbencher said the City of London would remain a world-class finance hub post-Brexit by doing away with much of red tape currently imposed by Brussels.
He argued Britain “must make the City more competitive post-Brexit”.
He said: “Freedom works and we want to free the City even more.
“There is no link between the quantity of regulation and financial stability.
“London could become even greater in the future free from the thousands of pieces of choking regulations.”
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He concluded by saying the Government would do well to use consider the projections of EFT.
He said: “This group believes that Brexit will be overwhelmingly positive for the economy.
The Brexiteer added some of the economists who had faced criticism for arguing against the UK joining the euro had worked on the EFT report.
He said: “When the UK decided against joining the Euro, it was seen as an act of self harm.”
But he added a “small band of economists”, which included one of the report's authors, Professor Patrick Minford, had correctly predicted it would have been a disaster for the UK.
Professor Graeme Leach, EFT chairman, said: “Brexit will be unequivocally positive for the UK economy. If you look at it from the right perspective.”