Britain’s economy will suffer rising unemployment and falling household incomes that would trigger a recession if there is a no-deal Brexit outcome, says global rating agency Standard & Poor’s.

Property prices would slump and inflation would spike to more than 5% in a scenario that S&P said had become more likely in recent months following deadlock with Brussels over a post-Brexit deal.


Economic think tank the Institute for Fiscal Studies has warned that chancellor Philip Hammond is gambling with the future health of the UK’s public finances.

The IFS said that his Budget, which handed out tax cuts to the rich while finding extra money for the NHS by increasing national borrowing, could create problems if the recent rise in tax receipts reduced in future.