Hard Brexit could trigger slump worse than 2008 crash, warns Vince Cable
He warned a combination of falling consumer confidence, job losses, and inflation has the potential to outstrip the credit crunch.
Brexit could trigger a bigger slump than the 2008 financial crash, former Liberal Democrat Cabinet minister Sir Vince Cable has predicted.
The ex-business secretary warned that a combination of falling consumer confidence, job losses, and inflation has the potential to outstrip the credit crunch storm if Prime Minister Theresa May pushes through a hard Brexit withdrawal from the EU.
Sir Vince, who hopes take back his old seat of Twickenham for the Lib Dems in the General Election, said: “For Britain, the economic weather is arguably worse than it was before the credit crunch. The pound has plummeted, which is driving up prices and trapping consumers in a vicious Brexit squeeze.
“Consumer confidence was all that kept the storm clouds away. But with job losses at everywhere from Deutsche Bank to Nestle, that confidence is going to drain away further.
“The chancellor clearly has no confidence in the economic strategy of the Government, because he knows that leaving the single market and customs union has the potential to devastate the UK economy.
“If Britain enters a second economic storm, it will be Theresa May’s economic storm. You can’t have a hard Brexit and a strong economy.
“That is why it is vital that the General Election produces a large increase in MPs who understand why it is essential to remain in the single market and customs union.”