BoE Warns Brexit Will Weigh on UK Growth

At the G30 seminar, Bank of England governor Andrew Bailey warned Brexit will have a negative impact on UK economic growth “for the foreseeable future,” saying potential growth could fall from about 2.5% to 1.5% over 15 years because of lower productivity, an ageing population and post‑Brexit trade frictions. ONS data showed GDP rose 0.1% in August after a 0.1% fall in July and grew 0.3% in the three months to August. Ahead of next month's budget, Chancellor Rachel Reeves faces pressure to raise taxes, and Labour leadership — including Health Secretary Wes Streeting — is preparing to pin much of the blame for weak growth and higher tax burdens on Brexit and on Nigel Farage. Streeting said he is "glad that Brexit is a problem whose name we now dare speak," and Labour plans to cite estimates reported in The Times that the economy could be roughly £120 billion larger by 2035 had the UK remained in the EU as political cover for difficult fiscal choices. Officials say some long‑term adjustment is possible but warn Brexit has exacerbated structural challenges that will complicate fiscal decisions.