Bloomberg
Published Apr 20, 2018 00:01
Updated Apr 20, 2018 03:54
U.K. Auditor Warns Brexit Bill Could Exceed 39 Billion Pounds
(Bloomberg) -- The U.K’s Brexit payments to the European Union could exceed the 39 billion-pound ($55 billion) ceiling of the Treasury’s estimate, the government auditor said, reviving discussion about one of the most controversial elements of December’s divorce agreement.
Prime Minister Theresa May at the end of last year reached agreement with her 27 EU counterparts on the draft terms of an exit deal, that included payments from Britain to EU coffers totaling 35 to 39 billion pounds.
The Brexit bill, though unpalatable to the most ardent Brexit supporters in May’s Conservatives, was presented as a U.K. victory, because figures as high as 100 billion euros ($124 billion) had been cited during the talks.
But the final tally may yet exceed the government estimate because it’s based on Treasury assumptions, according to a report by the National Audit Office. Small changes to any of those assumptions -- which include exchange rates and Britain’s economic performance -- may lead the final bill to fall outside the stated range, it said, without providing a fresh estimate.
The government’s spending adviser, the Office for Budget Responsibility, last month estimated that final payments -- stretching as far as 2064 -- will total 37.1 billion pounds.
The office said that while the Treasury’s estimate was “reasonable,” a number of factors could lead the final bill to differ. They include:
Written By: Bloomberg
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.