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Brexit Could Force U.K. to Extend Austerity by Two Years

  • IFS says quitting EU might add 40 billion pounds to borrowing
  • Economic damage would dwarf savings on payments to EU budget
Bloomberg business news

Brexit: Would Slim Remain Result Bolster Euroskepticism?

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Leaving the European Union could add tens of billions of pounds to U.K. government borrowing and force Chancellor of the Exchequer George Osborne to extend austerity into the next decade, according to the Institute for Fiscal Studies.

Instead of returning to surplus in the 2019-2020 fiscal year as currently planned, Britain may face a budget deficit of as much as 30 billion pounds ($44 billion) if Britons vote for a so-called Brexit next month, the London-based IFS said in a report published Wednesday.