The Governor of the Bank of England has claimed that Brexit could mean a reduction in house prices by up to 35 per cent, sparking accusations he wants to spread “gloom and despondency”.
Mark Carney said to the cabinet on Thursday that in a “worst case scenario” Brexit would cause the pound to fall sharply, mortgage rates would plunge, inflation and interest rates would rise and millions of homeowners would be left in negative equity.
These comments were made as the Government published 28 no-deal preparation papers, containing information on how passports, mobile phones and driving licences would be affected.
Mr Carney, commonly identified as a Remain supporter, met with the Cabinet to discuss the event of a no-deal and draft Bank of England models for various Brexit outcomes.
A Cabinet source said “There was a lot of pushback from around the Cabinet table. Ministers on both sides of the Brexit debate were asking him how he had got to those numbers and pointed out there was no input from policy makers.”
David Jones, the former Brexit minister, commented: “The fact is that the economy has defied the predictions of many Remainers and is doing well, with record levels of employment. Mark Carney should stop going around spreading gloom and despondency and concentrate on the benefits of Brexit.”
Similarly, France’s Minister for European Affairs was accused of “blatant scaremongering” after she claimed Eurostar trains will stop running and aircraft will be grounded in the event of a no deal Brexit. Downing Street mocked her suggestion, remarking saying it was “in everyone’s interests” to keep the Channel Tunnel open and aircraft flying as usual.
The no deal documents published yesterday received a lot of attention as Remainers sought to expose the negative implications. Predictions were made that mobile phone roaming and data charges could be reintroduced for tourists travelling to the EU, however the Government quashed these rumours outlining that the largest mobile operators, covering 85 per cent of customers, had agreed not to reintroduce the charges in the event of no deal.