UK fiscal watchdog warns over taxes and public spending in Brexit Britain

Britain will need to curb public spending further or raise taxes if leaving the EU does long-term damage to economic growth, underscoring the importance of the country striking new trade deals, the UK government’s budget watchdog has said.

The Office for Budget Responsibility said ensuring robust trade agreements was more significant for the long-run health of Britain’s public finances than the size of any divorce bill to settle one-off liabilities with the EU.

A continuation of Britain’s recent weak productivity would also make tax rises or spending cuts more likely, the OBR said.