Capital Economics does not have a strong axe to grind either way on the EU question. But we do feel that many of the arguments put forward on both sides are exaggerated – including those from the Government last week.
We may soon get a brief respite from the Brexit debate as attention starts to turn to the Budget that takes place in a little under a fortnight. The backdrop is hardly what the Chancellor would hope for; indeed, Mr Osborne has already embarked on some expectations management. Even if he manages to avoid ramping up austerity further, the purse strings will be kept tight on March 16th.
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