The UK has a ‘fair few years’ of pain before we see economic stability says former RBS boss

28 November 2022, 11:38

Ross McEwan National Australia Bank Managing Director & Ex-Chief Executive of Royal Bank of Scotland

National Australia Bank's Ross McEwan warns of financially “difficult” times to come for the UK, some of which stem from Brexit.

A Former RBS boss has told Nick Ferrari at Breakfast on LBC that the UK’s economic “troubles” could last a “fair few years”.

Ross McEwan, CEO and Managing Director of National Australia Bank, was asked by Nick Ferrrari: “How long do you think the pain will continue in the UK?”

Mr McEwan replied: “I think you’ve got a fair few years to get through this. You've got to get inflation down, which is difficult.”

“You’ve got an economy that’s sitting there - it’s having some troubles”, he added.

This conversation comes amid a raging cost of living crisis. The UK entered a recession earlier this month according to the Office forBudget Responsibility and Chancellor Jeremy Hunt announced over £50bn of tax rises and spending cuts.

Inflation has soared to a 41-year high of 11.1 per cent and food prices have also shot up by 10.6 per cent in a year.

Although the government has provided support for energy bills, financial journalist Martin Lewis has said those in the “squeezed middle” are facing a 41 per cent rise in bills as they will not receive the £400 help.

READ MORE: The winners and losers of the Autumn Statement announced by Jeremy Hunt

In reference to the financial impact of Brexit, Mr McEwan said: “You pulled yourself out of the European market…you’ve lost 15 per cent of the value of the UK exporting into the European market in a six month period of time. That's a lot of income to give away.”

He said the solution was to “get the economy of the UK moving again with some stability” and “quietly establish yourselves as a great exporting nation which the UK always was”.

In reference to the OBR’s forecast that the recession which started last week would stretch on for about two years, he asked: “2024, Britain back on track?"

“I think it’s going to be that long”, came the banking chief’s reply.