Quitting the EU could could trigger an economic crisis even greater than the 2008 financial crash, former business secretary Vince Cable has said. Cable predicted that job losses, inflation and falling consumer confidence could send the UK economy into a recession even harsher than the credit crunch if Theresa May presses ahead with a hard Brexit.
The Liberal Democrat made the comments as he launched his bid to reclaim his old seat of Twickenham in June’s general election. He has vowed to battle to keep Britain in the single market and the customs union if reelected.
“For Britain, the economic weather is arguably worse than it was before the credit crunch. The pound has plummeted, which is driving up prices and trapping consumers in a vicious Brexit squeeze,” he said in a statement. “Consumer confidence was all that kept the storm clouds away. But with job losses at everywhere from Deutsche Bank to Nestlé, that confidence is going to drain away further.
“The chancellor clearly has no confidence in the economic strategy of the government, because he knows that leaving the single market and customs union has the potential to devastate the UK economy. If Britain enters a second economic storm, it will be Theresa May’s economic storm. You can’t have a hard Brexit and a strong economy.
“That is why it is vital that the general election produces a large increase in MPs who understand why it is essential to remain in the single market and customs union.” He went on to assert that only the Lib Dems would be capable of holding a future Conservative government to account.
Cable entered the Houses of Parliament in 1997 and served as business secretary between 2010 and 2015 in the coalition government, but dramatically lost his seat to the Conservatives’ Tania Mathias in the 2015 general election.
Ahead of the 2008 crash, he repeatedly warned the then government about the risks related to the high level of household debt in Britain. He was a vocal critic of Labour’s handling of the Northern Rock crisis, calling for the bank to be nationalised.
