Robert Chote, chairman of the Office for Budget Responsibility (OBR
), took the unprecedented step of writing to the Prime Minister to set the record straight.
Mr Spencer said the OBR
policy bears little resemblance to proposals to resolve the banking crisis in Cyprus.
forecast adds to further gloomy predictions as it emerged that the European Central Bank had failed to deliver measures for tackling the EU's debt crisis.
expects the Government to borrow pounds 126 billion this year, rather than pounds 127 billion, while it maintained its 2012/13 forecast at pounds 120 billion and lowered its each of its predictions for 2013/14 to 2016/17.
It is anticipated that the OBR
's projections would be significantly downgraded, and even predict a recession, if the government was to carry out its threat of delivering a nodeal Brexit.
No-deal would also add about PS30billion a year to government borrowing from 2021, the OBR
said, which is PS577million a week.
warned that a no-deal Brexit could lead to a 2% fall in real GDP by the end of 2020 and a sharp fall in the pound.
, in its fiscal risks report, quantified the impact on the public finances of a no-deal, no-transition Brexit scenario.
In a brief ceremony which preceded the presentation that also coincided with the birthday of the Director of OBR
The participants danced to the beat of the OBR
song to show their support to the global movement, which began in 2012 when different countries came together to hold a series of women's rights initiatives.
"A disorderly one [Brexit] could have severe short-term implications for the economy, the exchange rate, asset prices and the public finances," the OBR
Mrs Morgan highlighted the OBR
's view of the implications of a no-deal Brexit, explaining: "The nearest precedent the OBR
could think of was a three-day week, which it said knocked 3% off our economy that quarter."