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Monday 24 October 2022 7:39 am  |  Updated:  Monday 24 October 2022 12:22 pm

Terra Firma boss says UK may need bailout from IMF and now ‘sick man of Europe’ due to Brexit deal

By: Jack Mendel

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Guy Hands (Wikipedia/ CC BY-SA 4.0/Author Historyoftheaic)

A leading investment chief has predicted the UK may need a bailout from the IMF and is now the “sick man of Europe” because of the way Brexit was negotiated.

Guy Hands, founder of private equity firm Terra Firma, said the UK’s investment landscape was bleak and the Conservatives “not” fit to run the country.

Speaking on BBC Radio 4 this morning, the long-time backer of the Tories he said: “It’s got to move on from fighting its own internal wars.”

The Tory donor said the issue was not just the last six weeks but decisions made “in the past six years which has put the country on the path to be the sick man of Europe.”

When they did Brexit they had a dream of a low tax low benefit economy. Truss to be fair to her tried it and it’s clearly something that is not acceptable to the British people.”

Saying that vision of Brexit requiring “extreme Thatcherism” was unachievable, he added “the Brexit that was done is completely hopeless and will only drive Britain into a disastrous economic state.”

The Terra Firma founder and CEO said the Tories had to “own up to the mistake they made in negotiating Brexit” and put in place someone with the “intellectual capability to re-negotiate Brexit”, there is a “possibility of turning round the economy”.

Without that, the economy “is frankly doomed”.

He said the result of the current situation will result in “steadily increasing taxes, reducing benefits and social services, higher interest rates and eventually the need for a bailout from the IMF.”

“Long term it is” a very bad investment landscape he said, and that while from a business perspective he speaks positively, “from an honesty perspective” it’s bleak, dominated by “poverty levels in the UK”.

Read more

Singapore on Thames or the Sick Man of Europe?: The Economics of Brexit Ten Years from the Referendum 

UK-EU Brexit negotiations meeting with officials discussing trade agreements and policy impacts in a formal conference room

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