The UK has a ‘fair few years’ of pain before we see economic stability says former RBS boss

28 November 2022, 11:38

Ross McEwan National Australia Bank Managing Director & Ex-Chief Executive of Royal Bank of Scotland

By Phoebe Dampare Osei

National Australia Bank's Ross McEwan warns of financially “difficult” times to come for the UK, some of which stem from Brexit.

A Former RBS boss has told Nick Ferrari at Breakfast on LBC that the UK’s economic “troubles” could last a “fair few years”.

Ross McEwan, CEO and Managing Director of National Australia Bank, was asked by Nick Ferrrari: “How long do you think the pain will continue in the UK?”

Mr McEwan replied: “I think you’ve got a fair few years to get through this. You've got to get inflation down, which is difficult.”

“You’ve got an economy that’s sitting there - it’s having some troubles”, he added.

This conversation comes amid a raging cost of living crisis. The UK entered a recession earlier this month according to the Office forBudget Responsibility and Chancellor Jeremy Hunt announced over £50bn of tax rises and spending cuts.

Inflation has soared to a 41-year high of 11.1 per cent and food prices have also shot up by 10.6 per cent in a year.

Although the government has provided support for energy bills, financial journalist Martin Lewis has said those in the “squeezed middle” are facing a 41 per cent rise in bills as they will not receive the £400 help.

READ MORE: The winners and losers of the Autumn Statement announced by Jeremy Hunt

In reference to the financial impact of Brexit, Mr McEwan said: “You pulled yourself out of the European market…you’ve lost 15 per cent of the value of the UK exporting into the European market in a six month period of time. That's a lot of income to give away.”

He said the solution was to “get the economy of the UK moving again with some stability” and “quietly establish yourselves as a great exporting nation which the UK always was”.

In reference to the OBR’s forecast that the recession which started last week would stretch on for about two years, he asked: “2024, Britain back on track?"

“I think it’s going to be that long”, came the banking chief’s reply.

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