Hunt blames Brexit for economic deterioration

Chancellor of the Exchequer Hunt spoke at the “Ending Stagnation: A New Economic Strategy for Britain” conference organized by the think tank Resolution Foundation in London.

Noting that Brexit caused a period of political instability in the UK lasting approximately 5 years, during which private sector investment was suppressed, Hunt said, “We had our Brexit. That led to the suspension of parliament. That led to an incredibly difficult period politically.”

Hunt stated that although the British public decided to leave the EU, a consensus could not be reached in the country's parliament on how this departure would take place, and that the country faced the pandemic following the fall of former Prime Minister Theresa May's government.

Arguing that the UK has begun to gain stability under the leadership of Prime Minister Rishi Sunak, Chancellor Hunt stated that Western nations have fallen into a "low-growth paradigm" since the 2008 financial crisis.

Stating that the British economy is suffering from a "sprained ankle" rather than a "broken leg," Hunt reported that the government is trying to highlight the country's strengths, including technological innovation and education.

Jeremy Hunt said, "If we are going to deal with a sprained ankle rather than a broken leg, let's do it with a positive outlook because we have a lot of work to do."

Chancellor of the Exchequer Hunt rejected the claim that the UK is lagging behind its peers, insisting that since 2010, the UK's Gross Domestic Product (GDP) has grown faster than countries such as Spain, Italy, and Germany.

In the research titled “Economy 2030” conducted by the Resolution Foundation and the Centre for Economic Performance, it was stated that the standard of living in the UK has fallen behind the US, Germany, and France due to low economic growth.

The report noted that in the 12 years following the 2008 financial crisis, labor productivity in the UK increased by only 0.4 percent per year, which is half the rate of the 25 wealthiest Organisation for Economic Co-operation and Development (OECD) countries.

The report also emphasized that living standards in the UK have deteriorated significantly due to the economic disruption, loss of production, and stagnant employee incomes experienced since the financial crisis.

The report stated that as of 2023, the share of UK trade in Gross Domestic Product (GDP) fell by 2.2 percent compared to pre-pandemic levels. On the other hand, there was a 0.5 percentage point increase in the rest of the G7. This decline was compounded by the UK losing market share in both EU and non-EU markets, including the US, Canada, and Japan.”