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Brexiteer economist trashes ‘misplaced’ no deal fears as he outlines huge benefits for UK

Daily Express :: UK Feed

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Dr Lyons insisted Brexit will provide the chance to “reboot” the British economy as he dismissed claims a no deal could have a strongly negative impact on the UK. The Brexiteer economist conceded that leaving the European Union would be “difficult” but pointed out a “stimulative policy response” would provide business with economic support. Speaking to Bloomberg, Dr Lyons said: “It’s important for international investors to realise Brexit is a great opportunity for the UK.

“It’s a great opportunity to reboot the UK economy. Ideally, we should leave with a deal – indeed, I think that’s the most likely scenario.

“But were we not to have a deal, then rather than let this linger on and on then a no deal, or clean break, becomes likely.”

The economist continued: “I’ve pointed out no deal is difficult for those firms in integrated supply-chains like the auto sector, pharmaceutical sector or farming sector but with a no deal is opaque at the moment.

“It’s all about, at the end of the day, how much preparation has been made, how the EU will react and, of course, if we were to have a no deal then there would likely be a significant stimulative policy response in the UK.

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“Positive for the supply side and the demand side. So, really, a deal is the most likely scenario but a no deal, there’s been lots of misplaced fears.”

Dr Lyons added: “It’s clearly disruptive because we probably haven’t had enough time to prepare for it but as the previous Governor of the Bank of England, Mervyn King, pointed out back in March, ‘people are over-fearing a no deal too much’.”

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Last month, Chancellor Sajid Javid announced the Government is ready to respond to the consequences of a no deal Brexit with a strong “economic policy response.”

Chancellor Javid said: “What I am confident about is that with all those mitigations, whether it’s at the ports or elsewhere, we will be able to deal with many of the disruptions around no deal.

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“I am also clear that, if it was no deal, there would be significant economic policy response.

“You obviously have the independent Bank of England that will certainly think about a monetary policy response, and that’s for them, but I will be thinking about a fiscal and other economic policy response.”

Boris Johnson has been engaged in a battle of wills with Brussels since he presented his proposal for an alternative to the controversial Irish backstop.

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Mr Johnson put forward plans to keep Northern Ireland in the single market to maintain the necessary commercial alignment with Ireland but have the region leave the customs union with the rest of the UK. 

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The new proposal would effectively result in customs checks, a possibility the EU has refused to accept due to claims the terms of the Good Friday (Belfast) Agreement would not be met.

A spokesman for the British Government said the Prime Minister offered clarity on the proposals.

The spokesman said: “Following hours of discussions last week, the UK provided additional legal text today.

“This provided further technical detail on customs and goods regulations to further clarify how the UK’s proposals would operate.”

But a spokeswoman for the European Commission said the institution felt Britain failed to offer an alternative to the Irish backstop.

The backstop was initially devised to prevent the return of a hard border between Northern Ireland and the Republic of Ireland.

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Brexiteer economist trashes ‘misplaced’ no deal fears as he outlines huge benefits for UK

Dr Lyons insisted Brexit will provide the chance to “reboot” the British economy as he dismissed claims a no deal could have a strongly negative impact on the UK. The Brexiteer economist conceded that leaving the European Union would be “difficult” but pointed out a “stimulative policy response” would provide business with economic support.

Dr Lyons insisted Brexit will provide the chance to “reboot” the British economy as he dismissed claims a no deal could have a strongly negative impact on the UK. The Brexiteer economist conceded that leaving the European Union would be “difficult” but pointed out a “stimulative policy response” would provide business with economic support.

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