Jeremy Hunt sets September 30 for decision on no-deal Brexit – The FT

  • The Tory leadership contender promises £6bn in emergency funding to help farmers and fishermen in the event of a no-deal.
  • “There is a hard deadline in what I have said, by the end of September, I, as prime minister, will make a judgment as to whether there is a realistic prospect of a deal that can get through parliament in the short-term.”
  • During a speech in London he set out a 10-point plan, including a Cobra-style committee to “turbocharge” Whitehall preparations and keep Britain open for business in the event of World Trade Organisation (WTO) tariffs coming into effect.
  • A no-deal Brexit budget should be prepared, including a corporation tax cut to 12.5%, increasing the annual allowance to £5m and taking 90% of high street businesses out of rates.
  • He said he would prefer the UK to leave the EU with a “new deal” that removes the Irish backstop and ensures a fully independent trade policy, which he will say is possible “if the Commission engages in good faith”.

UK factories report worst month in six years amid Brexit fears – The Guardian

  • UK manufacturers have recorded the sharpest drop in factory output for more than six years amid mounting concerns over Brexit, as growth in consumer borrowing eased to the lowest level in more than five years.
  • The monthly snapshot from IHS Markit and the Chartered Institute of Procurement and Supply showed that activity levels in the UK manufacturing sector dropped to the lowest level since February 2013 in May, as firms scaled back their orders due to existing high stock levels.
  • The IHS Markit/Cips manufacturers purchasing managers’ index (PMI) plunged to 48.0 in May, down from 49.4 a month ago and dropping well below the forecasts made by City economists. Anything above 50.0 separates economic growth from contraction.

UK economy feels the strain of global slowdown as well as Brexit – Reuters

  • Britain’s economy has lost momentum and might have shrunk in the second quarter of 2019, according to data that showed the double impact of Brexit and the slowdown in the global economy.
  • Manufacturers had their worst month in more than six years and consumers increased their borrowing at the slowest pace since 2014.
  • The value of sterling fell against the dollar and the euro after the data was published. Howard Archer, an economist with EY Item Club, a forecasting group, estimated that Britain’s economy contracted by 0.2% in the April-June period.
  • But economists said Monday’s manufacturing purchasing managers’ index showed how hard Britain’s factories were also being hit by the slowdown in the world economy caused by the trade skirmishes between the United States and China.