Billionaire says Britain may be forced to seek IMF bailout if it does not renegotiate Brexit deal

The billionaire has insisted that the UK’s current economic woes are the result of a poorly negotiated Brexit deal, not the controversial tax cut proposals of Liz Truss’ government.

A billionaire says a bad Brexit deal is to blame for the UK’s economic woes.

British billionaire Guy Hands has warned that Britain must renegotiate the Brexit if it is to avoid seeking a bailout from the International Monetary Fund (IMF). According to Hands, Britain’s poorly negotiated exit from the European Union is the main cause of the UK’s current economic woes.

According to an article in The Telegraph, Guy Hands believes that Britain’s period of economic pain – which apparently reached its crescendo when the pound fell to its lowest exchange rate against the dollar – began six years ago and could eventually see the country become “the sick man of Europe“.

While Britain may not need an immediate bailout, Guy Hands, founder of the private equity firm Terra Firma, insists that seeking such financial assistance will become a reality if British ministers fail to renegotiate the Brexit deal. Hands warned of the country’s current trajectory:

A steady increase in taxes, a steady reduction in benefits and social services, higher interest rates, and ultimately the need for an IMF bailout.

Guy Hands, who is a supporter of the ruling Conservative party, is reported to have suggested that he does not believe that the tax cut proposals of the outgoing Liz Truss government are to blame for the UK’s financial mess.

Guy Hands: The Tories need to admit their mistake.

Kwasi Kwarteng’s tax cut proposals – the UK’s former chancellor of the exchequer – have reportedly spooked financial markets, sending the pound to its all-time low against the US dollar.

Meanwhile, Guy Hands has suggested that the Brexit deal should be recognized as bad and has set Britain on a disastrous economic path. In his remarks to the Conservative Party, which has since chosen Rishi Sunak to become the next UK prime minister, the billionaire said:

“I think if the Conservative Party can acknowledge its mistake in the way it negotiated the Brexit and have someone at the helm who actually has the intellectual capacity and authority to negotiate the Brexit, there is an opportunity to turn the economy around, but without that, the economy is frankly doomed.”

After hitting a low of 1.03 to the dollar, the pound has since recovered and is trading at £1 to $1.13 today.