Project Fear lay in tatters last night after a string of major reports showed the British economy is prospering following the Brexit vote.
In a damning assessment of the scaremongering by the Remain camp, the Office for National Statistics declared that there had been no post-referendum economic shock.
Even the left-leaning, pro-EU Guardian newspaper reported the economy had 'confounded analysts' gloomy expectations,' with its own analysis finding consumer spending was strong, unemployment low and the housing market stable following June's EU vote.
The ONS even pointed to ‘indicators of strength’ – such as rising house prices, record levels of employment and soaring high street sales.
Remainers also like to keep saying that many of those who voted Brexit now "regret" their decision. But that claim also lies in tatters.
An analysis of polling by elections expert John Curtice found there was ‘not much evidence of buyer’s remorse,’ among Brexit supporters – with the vast majority still wanting to leave the EU.
It found little support for a second referendum on Britain’s EU membership. Only about a third of voters want to see a second poll, ‘virtually all of them Remain voters’.
Now even the lefty GUARDIAN says Brexit's not that bad as three of the most impeccably independent institutions say we're BOOMING
ONS declared that there had been no post-referendum economic shock
The comments made a mockery of George Osborne's dire warnings
Bank of England also admitted that business sentiment had improved
The OECD was forced to raise its growth forecasts for the UK economy
By Hugo Duncan, Deputy Finance Editor For The Daily Mail
22 September 2016
So wrong: George Osborne
Project Fear lay in tatters last night after a string of major reports showed the British economy is prospering following the Brexit vote.
In a damning assessment of the scaremongering by the Remain camp, the Office for National Statistics declared that there had been no post-referendum economic shock.
Even the left-leaning, pro-EU Guardian newspaper reported the economy had 'confounded analysts' gloomy expectations,' with its own analysis finding consumer spending was strong, unemployment low and the housing market stable following June's EU vote.
The ONS even pointed to ‘indicators of strength’ – such as rising house prices, record levels of employment and soaring high street sales.
The upbeat comments from the country’s official statistical body made a mockery of George Osborne’s dire warnings before the vote of ‘an immediate and profound’ economic blow.
The Bank of England also admitted yesterday that business sentiment had improved about Britain’s post-Brexit prospects, and said the fall in the pound had boosted tourism.
And, in a significant U-turn, the OECD was forced to raise its growth forecasts for the UK economy, having been among the many international forecasters to predict economic catastrophe.
Last night Tory MP John Redwood, a former cabinet minister, said: ‘These people got it comprehensively wrong. Those people who threatened us with an immediate shock and recession should be apologising.’
On a day that appeared to have hammered the final nails into the Project Fear coffin:
Banking heavyweights including UBS, Bank of America Merrill Lynch, Morgan Stanley and JP Morgan also raised their forecasts for the UK;
A separate ONS report showed the deficit fell in August thanks in part to a surge in income tax and corporation tax receipts;
Car production was at a 14-year high, with demand from overseas booming.
Mr Osborne, chief architect of Project Fear, had claimed a Brexit vote would cause a ‘DIY recession’, while David Cameron said it would put ‘a bomb under the economy’.
But yesterday the new Chancellor Philip Hammond hailed the ‘underlying strength in the UK economy’.
City commentator David Buik, an analyst at stockbroker Panmure Gordon, added: ‘It comes as absolutely no surprise to me that the ONS feels that Brexit has not damaged the UK’s economy. There was absolutely no need for Project Fear. It was irresponsible and totally unnecessary.’
In a sweeping round-up of economic data collected since the referendum, the ONS noted that house prices ‘continued to grow strongly’, while the manufacturing and construction sectors are on the same paths as before vote. It added: ‘So far there are no signs of a sharp collapse in consumer confidence as some early fears had suggested.’
Joe Grice, its chief economist, said: ‘The referendum result appears, so far, not to have had a major effect on the UK economy. So it hasn’t fallen at the first fence but longer-term effects remain to be seen.’ The OECD – the leading economic think tank in the West – said it now expects the economy to grow by 1.8 per cent this year. That was better than the 1.7 per cent previously forecast and puts Britain on course to be the fastest growing major economy in the developed world this year alongside Germany. Earlier this year, the Paris-based watchdog had warned Brexit ‘would be a major negative shock to the UK economy’.
A monthly round-up of independent forecasts published by the Treasury also showed City institutions were far more optimistic. After the Brexit vote, banks had downgraded their forecasts. But Morgan Stanley, which donated £250,000 to the Remain camp, now expects growth of 1.9 per cent this year, up from the 1.2 per cent it predicted in August.
UBS revised up its forecast for growth this year from 1.3 per cent to 1.9 per cent as it welcomed ‘a more resilient post-referendum performance than anticipated’.
The Bank of England warned the economy has slowed since the referendum, having grown by 0.6 per cent between April and June, and added that companies are less willing to take on staff or invest. But its report, based on the views of its regional agents – its eyes and ears around the country, found sentiment improved in August.
The Bank said the fall in sterling – it is down 11 per cent against the euro since the referendum – has boosted tourism as families opted to holiday in Britain.
It added that the fall in sterling, which raises the cost of imports, has not led to higher prices, despite claims a vote to leave would hit shoppers in the pocket.
ONS figures yesterday showed the Government borrowed £10.5billion last month – down from £11.5billion in August last year. The Treasury was boosted by a rise in tax receipts. In a further sign business is booming, the Society of Motor Manufacturers and Traders said 109,000 cars were produced last month – the best August for 14 years.
No buyer's remorse: Voters want to cut migration and stop funding EU
Theresa May has already indicated that ending free movement will be a deal-breaker
Ending free movement from Europe and halting the billions Britain sends to Brussels are the public’s ‘red lines’ for the Brexit negotiations, a new study revealed yesterday.
An analysis of polling by elections expert John Curtice found there was ‘not much evidence of buyer’s remorse,’ among Brexit supporters – with the vast majority still wanting to leave the EU.
It found little support for a second referendum on Britain’s EU membership. Only about a third of voters want to see a second poll, ‘virtually all of them Remain voters’.
And it laid out voters’ key demands for Brexit negotiations. Ending Britain’s EU budget contributions is the public’s top priority, with 81 per cent in favour.
Scrapping the free movement of people is also a red line, with 79 per cent of voters citing it as a key demand. Theresa May has already indicated that ending free movement will be a deal-breaker. Cabinet ministers at Chequers last month agreed the exit deal ‘must mean controls on the numbers of people who come to Britain from Europe’. But Mrs May has avoided questions about whether Britain will halt all payments to the EU. Some ministers are pushing her to agree to reduced contributions in return for access to the EU’s single market. Professor Curtice said it was clear that any deal that involved the UK continuing to bankroll Brussels would meet stiff resistance. ‘It’s a sovereignty issue,’ he said. ‘Most people do not feel European in this country.
‘And so there is an argument about the legitimacy of this £350million (a week) that we don’t “control”, that the EU decides how is spent. People think – “Why does the EU have the right to spend our money?”’
By contrast, voters are more relaxed about having to comply with EU regulations. Just 17 per cent said ending all Brussels rules should be a red line.
Professor Curtice analysed results of every poll conducted since June 23. Remainers have claimed the public mood has changed since Brexit, with many voters regretting their vote. But Professor Curtice suggested this was ‘wishful thinking’. It came as Mrs May prepared for crunch talks in Downing Street today with Martin Schulz, the socialist leader of the European Parliament, which has the power to veto Brexit terms.
HUNGARY: UK CITIES' NO-GO ZONES
Hungary has sparked a diplomatic row with Britain after claiming that parts of the UK are now ‘no-go zones’ because of the number of migrants.
In a leaflet sent to millions of Hungarian households, the government in Budapest said the British authorities are unable to maintain control in the areas where ‘social norms’ no longer apply because of the number of migrants. Cities across Europe are marked on a map with ‘no-go’ signs, including six in Britain that appear to relate to locations including London, Southampton and Peterborough.
The British Embassy in Budapest has complained to the Hungarian foreign ministry about the leaflet.
Read more: UK economy is BOOMING after Brexit say three independent institutions | Daily Mail Online
Follow us: @MailOnline on Twitter | DailyMail on Facebook