(Bloomberg) --
Boris Johnson's “do or die” pledge to take the U.K. out of the European Union, coupled with extravagant tax cuts, could wipe out half the austerity savings made since 2010. During the leadership campaign, Johnson's fiscal pledges amounted to about 20 billion pounds, or 1% of gross domestic product, which could lift output by about 0.3%, according to Bloomberg Economics. That economic boost risks being dwarfed by the impact of a no-deal Brexit, which BE estimates could push the level of GDP down by 2% by 2023-24. Taken together, a 50 billion pound ($60 billion) black hole may open up in the public finances.
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