Blow for Hammond as borrowing widens amid consumer slowdown – Sky News

English: East entrance of HM Treasury Français...

English: East entrance of HM Treasury Français : Entrée Est de HM Treasury (Photo credit: Wikipedia)

Sky News reports that stalling VAT receipts held back UK Treasury revenues last month in the latest sign that higher inflation is holding back spending.

Blow for Hammond as borrowing widens amid consumer slowdown

At last, UK consumers have spotted the elephant in the room, Brexit will be seriously painful. On the back of higher prices, consumers have held back on expenditure. Another reason for Theresa May‘s to call a snap election, was to get in before the economy soured significantly.

This blog has consistently argued the risk of the economic downside following Brexit. The absence of detailed policies, costings and risk analysis in the Conservative Party 2017 Manifesto is deeply worrying. I am surprised that the media hasn’t yet focused on the downside risk, worst-case scenario of a hard-Brexit.

For sure the chickens will come home to roost.

I fear that Theresa May and her ministers will make a mess of Brexit negotiations but it’s not clear if the Conservatives will be ready to replace a sitting prime minister.

Am I being too pessimistic?

Thoughts?

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