The Bank of England warned the UK is on track for a “sharp economic slowdown” as they announced interest rates would rise to 1 percent. Speaking with Conservative Party Chairman Oliver Dowden on the Government’s next moves in light of BoE economic predictions, LBC host Nick Ferrari challenged Mr Dowden’s suggestion that the Government should focus on “taking advantage of the Brexit opportunities”. Mr Ferrari then challenged Mr Dowden to name the “Brexit opportunities” he can see for the UK as he listed the warnings the BoE outlined Thursday.
Mr Dowden said: “What I take from this and what the Prime Minister takes from this is that we really need to focus on what matters.
“We need to stop allowing us to be distracted about the noise of what is going in Westminster and focusing on reducing the NHS backlogs, investing on the NHS, taking advantage of the Brexit opportunities that we have, as well as ensuring we continue to create opportunities for people and their children and their grandchildren.
“We need that energy and delivery and focus.
Mr Ferrari objected: “We must live in different countries.
“Because you are talking about the benefit of Brexit.
“I’m sure you’ve seen the Bank of England saying we are facing recession and inflation will probably go over 10 percent.
“That would be a 40-year high, growth is down and there is pay drops.
“Talk to me what those opportunities are, as people are really struggling out there.
Mr Dowden responded: “I don’t deny for a minute the challenges that people are facing.
“We find ourselves in this unparalleled situation.
“We’ve come out of Covid, we have rapidly rising prices as result of pressure on supply chains and we have the crisis in Ukraine and the impact on oil and gas.
“That is driving inflation, not just in the United Kingdom, but across the western world and across the United States.
“Now, in response to that unparalleled situation, we are taking unprecedented action with over 22 billion pounds worth of support for people.
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“We are not going to be able to ensure that we remove all the problems with this like no other government around the world could do so.
“But we are really focused on addressing that, whether that is increasing the national living wage by 1,000 pounds or whether that is increasing the thresholds Universal Credit which sounds quite boring, but actually means for people of lower-income over 1,000 pounds a year better off”.
The claims follow the warning from the Bank of England that inflation is expected to breach 10 percent by the end of the year as a consequence of the fuel, energy, and food costs soaring also due to the war in Ukraine.
In light of the inflation rise, the Bank has also warned that the economy is expected to shrink next year.