Johnson’s plan to suspend Parliament will hit UK economy and pound

Prime Minister Boris Johnson has asked the Queen to suspend Parliament between 9 September and 14 October, therefore restricting MPs’ ability to prevent a no-deal Brexit.

Johnson’s latest move has been criticised by deVere founder and CEO Nigel Green, who stated that the Prime Minister is inflicting “unnecessary economic damage on an already extremely vulnerable UK economy”.

Green said: “It could be argued that Boris Johnson’s decision to ask the Queen to suspend Parliament, and therefore to prevent democratically elected representatives of the people doing their job, is deeply unconstitutional and has the hallmarks of a tin-pot dictator.

“However, it could also be argued that it is Mr Johnson fulfilling, one way or another, the will of the British people who voted to leave the EU in the 2016 referendum.”

The deVere founder noted that Johnson’s tactic has likely been drawn-up to “spook” negotiators into making concessions on the Withdrawal Agreements, adding that it will “almost certainly” be challenged in the courts.

Green highlighted that a recession is looming for Britain and suggested that the Prime Minister’s “highly controversial tactics” will “seriously increase the uncertainty” which will further drag on investment and trade.

“In addition, it will further batter the beleaguered pound, which reduces people’s purchasing power. Weaker sterling means imports are more expensive, with rising prices typically being passed on to consumers,” he continued.

Green concluded that Johnson’s decision will have far-reaching economic effects, many of which will not be known for years to come, but warned that domestic and international investors in UK assets need to watch the situation carefully and ensure that their portfolios are best-positioned to handle growing uncertainties.

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