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The Bank of England today predicted the damage to Britain's economy from a No Deal Brexit would be 'less severe' than thought because of government preparations since the end of last year.

Governor Mark Carney told MPs a cliff-edge withdrawal would see GDP shrink by 5.5% rather than the 8% slump previously predicted in November.

Mr Carney also predicted food prices would not increase as much as earlier expected - 5% or 6% rather than the previous 10% .

The bank is expecting inflation to more than double from the current rate around 2% to more than 5%. Unemployment would meanwhile surge to 7% rather than 7.5%, up from a current 45-year low of 3.8%.

Speaking at a hearing with the Treasury Select Committee, Mr Carney waded into politics by suggesting a further Brexit delay to January 31, arguing that 'more can be accomplished' by way of preparations if this is done.

The governor stressed these are scenarios that could happen, rather than what is most likely to happen.

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Mark Carney said the central bank now estimated that gross domestic product would contract by 5.5% peak to trough, less than the 8% seen in a set of scenarios published in November

The graph contained in Mr Carney's letter which shows GDP forecasts over time. The told red line shows the updated prediction for No Deal, the bottom one what it was previously

The sentence in Mr Carney's letter in which he refers to the updated forecasts, which will be welcomed by Brexiteers

Mr Carney's comments come as the cross-party committee of MPs published the Bank's updated analysis of the impact of different Brexit scenarios, following its controversial report in November last year.

In a letter to the committee, Mr Carney said preparations for a no-deal Brexit since then have meant the potential blow to the economy would be 'less severe'.

But he told MPs that extra time could help ensure the impact is reduced further still.

He said: 'The preparations that have been put in place since November not just at border in terms of border infrastructure, but also initiatives such as the temporary permissions, the improvements on the derivatives market that we've negotiated with the EU... the impact of that has been to reduce the worst case scenario.'

He added: 'There's more preparation that can be done, both in terms of public preparation and preparation by businesses.

'It stands to reason that if there were more time, more would be accomplished.'

But the Bank's analysis of the worst case still makes for painful reading, predicting that unemployment would rise to 7% and inflation peak at 5.25%.

Previously it had said the unemployment rate could surge to 7.5% and inflation to 6.5%.

Mr Carney also said the economy was already close to stagnating given the impact of Brexit uncertainty on businesses in the UK.

He said: 'If you look through the underlying trend, our judgment is that the economy is growing very weakly, positive but very close to zero.'

The economy contracted by 0.2% in the second quarter and recent gloomy data has raised fears of a further contraction in the third quarter - which would see the UK enter a technical recession.

Mr Carney also said the impact on food prices of a no-deal Brexit would be lower than the Bank previously thought, following the tariff schedule laid out by the Government earlier this year.

The Bank had previously said tariffs would add 5% to food prices, while a weaker pound could add another 5%, adding up to 10%.

It now thinks most of the increase would come from the pound's fall, meaning that food prices would likely be 5% to 6% higher.

Michael Gove, pictured on the BBC's Andrew Marr Show on Sunday) is urging the public to prepare for Brexit through a £100million advertising blitz

The huge campaign features billboards and a revamped website where panicked Brits can find out how crashing out of the bloc might affect their businesses and travel plans

On whether he would extend his term again should Brexit be delayed, Mr Carney refused to give a direct answer.

Mr Carney, who is due to leave on January 31, reminded the committee that he has extended his term twice already.

He said: 'It's a decision for the Government in terms of appointing a successor and the timing of that.

'I have every confidence they will be able to do so. It's the job of the Bank to fulfil its functions whatever parliament decides and we will do that.'

Michael Gove has been tasked with preparing the UK for a No Deal exist since Boris Johnson became Prime Minister.

On the weekend, he kicked off the government's biggest ever public information campaign with a £100million advertising blitz urging people to 'Get Ready for Brexit'.

The huge campaign features billboards and a revamped website where panicked Brits can find out how crashing out of the bloc might affect their businesses and travel plans.

Advertisements on television will follow, while Whitehall has ordered T-shirts and mugs bearing the slogan.

The Cabinet Office said its research showed only half the population think it is likely the UK will leave the EU on October 31.

Boris Johnson (pictured at No10 last week) announced that he was planning the campaign in the final days of the leadership contest

There have been dire warnings over shortages of fuel, food and medicines - all of which have been played down by ministers.

Some 42 per cent of small-to-medium sized businesses are unsure of how they can get ready and under a third of Britons have looked for information on how to prepare.

Mr Gove said: 'Ensuring an orderly Brexit is not only a matter of national importance, but a shared responsibility.

'This campaign will encourage the country to come together to Get Ready for Brexit on 31 October.'

Mr Gove today insisted there would be no shortages of fresh food after Halloween, but admitted some prices could go up.

One minister said that Downing Street had initially considered using the Vote Leave slogan, 'Take back control' for the information campaign.

However, No10 decided against it amid fears that it would appear too partisan. They eventually settled on 'Get Ready for Brexit' instead.

The government website's infrastructure had to be upgraded to cope with the expected demand from the new No Deal section.

The PM announced that he was planning a public information campaign in the final days of the leadership contest, saying: 'What we will do, is we will encourage people in a very positive way.'

Furious Boris Johnson calls Jeremy Corbyn a 'chicken' for BLOCKING an election and brands Labour's economic policy 's**t' in foul-mouthed taunt at PMQs

By James Tapsfield, Political Editor for MailOnline

Boris Johnson blasted 'dithering' Jeremy Corbyn for plotting a 'surrender' to the EU today as the Labour leader prepares to block his demand for a snap election.

Taking his first PMQs, a furious Mr Johnson branded Mr Corbyn a 'chlorinated chicken' for refusing to agree to a poll on October 15 and said he 'used to be a democrat'.

Channelling Margaret Thatcher's famous taunt to opponents, Mr Johnson said: 'Is he frit?'

At one point the premier also turned the air blue in the chamber by claiming the Opposition's economic strategy was 'sh** or bust'.

Channelling Margaret Thatcher's famous taunt to opponents at PMQs today, Boris Johnson demanded to know whether Jeremy Corbyn was 'frit' of a snap election

Meanwhile, the Labour leader was jeered by Tory MPs as he accused the PM of trying to 'avoid scrutiny'.

SNP Westminster leader Ian Blackford said his party also wanted anti-No Deal legislation passed before an election. But Nicola Sturgeon swiped that she did not believe Mr Corbyn 'wants an election at all'.

Mr Johnson is facing more massive showdowns in Parliament today as a rebel alliance tries to force through legislation that would rule out No Deal - thwarting his 'do or die' vow to take the UK out of the EU by Halloween.

He has also called a vote tonight on holding a snap election so the 'people can decide' after Remainers seized control of Commons business.

But the premier - who struggled at times during the PMQs session as he was berated over his Brexit stance - needs agreement from two-thirds of the House to trigger a national ballot.

And despite spending years demanding an election, Mr Corbyn has insisted he will stop one happening until legislation has been passed guaranteeing that the UK cannot crash out.

In a barrage of stinging jibes, Mr Johnson branded Mr Corbyn a 'chlorinated chicken' and said he 'used to be a democrat'

The decision - described as the 'mother of all U-turns' by ministers - leaves the country in limbo, with Mr Johnson now unable to control the House - but also powerless to return to the electorate.

The premier gathered his Cabinet in Downing Street this morning as they frantically try to plot a way through the burgeoning crisis.

The latest shocking developments began when Mr Johnson lost a crunch vote at around 10pm, giving a rebel alliance control of Commons business with the aim of passing a law to stop the UK crashing out of the EU at the end of October, by an unexpectedly large margin of 328 to 301.

Some 21 Tory MPs - including eight former Cabinet ministers - defied threats of deselection to side with the Opposition over Brexit.

The Labour leader was jeered by Tory MPs as he accused the Prime Minister of trying to 'avoid scrutiny' in the Commons

The rebel legislation and the PM's bid to force an early general election are both on the Commons order paper today

The politicians, including veteran Ken Clarke and Winston Churchill's grandson Sir Nicholas Soames, have now been brutally axed from the Conservatives, effectively ending their careers.

But the tough move means Mr Johnson's numbers in the Commons are disastrously low, far short of an overall majority and completely unsustainable.

At a combative PMQs session, Mr Johnson said he own strategy was to get a Brexit deal by the EU summit on October 17.

He added: 'What his surrender bill would do is wreck any chance of the talks and we don't know his strategy at all.

'He's asking for mobs and Momentum activists to paralyse the traffic in his name.

What will happen - and when - in the Commons today? 5pm: The first Commons vote on whether the anti-No Deal law can proceed takes place. 7pm: Another set of votes on whether the anti-No Deal law can proceed. If MPs back the Bill it will then head to the Lords for further scrutiny. 9pm: The PM will start a debate on whether there should be an early election. 10.30pm: MPs will vote on whether there should be an early election. Advertisement

'What are they supposed to chant? What is the slogan? ''What do we want? Dither and delay. When do want it? We don't know.''

'That's his policy. Can he confirm now that he will allow the people of this country to decide on what he is giving up in their name with a general election on October 15 - or is he frit?'

The PM listed his plans for police, the NHS and the economy before highlighting comments by shadow education secretary Angela Rayner.

Mr Johnson said: 'The shadow education secretary says that their economic policy is, I quote Mr Speaker by your leave, 'sh** or bust'.

'I say it's both, Mr Speaker.'

Mr Johnson faces an uphill battle to get his plan through the Commons tonight, as the law dictates that two-thirds of MPs must agree to hold an early election.

Mr Corbyn shouted at Mr Johnson across the despatch box last night: 'He wants to table a motion for a general election, fine. Get the bill through first in order to take No Deal off the table.'

And shadow Brexit secretary Keir Starmer said during a round of interviews: 'We are not voting for a general election today.

'We are not dancing to Boris Johnson's tune. If Johnson says the election will be on 15 October no one trusts him.'

Business minister Kwasi Kwarteng said Mr Corbyn was 'perverse' and 'frightened'.

'What is very clear to me is the leader of the opposition has said consistently that he wants a general election and it is perverse of him to say now that he doesn't want one, and it appears to me he is rather frightened of a general election,' he told Today.

'Biased' Bercow goes below the belt: Commons Speaker is accused of getting 'too personal and ranting like a lunatic' at Michael Gove

By Richard Spillett for MailOnline

Controversial Commons speaker John Bercow has been condemned today for launching an astonishing personal attack on Michael Gove last night in which he brought up the Tory MP's children during a row in Parliament.

The extraordinary ad hominem attack came when Mr Bercow reprimanded Mr Gove for 'theatrics' during one of the Speaker's many long-winded rebukes to members of Parliament yesterday.

But he went further than his usual put-downs by revealing that his and Mr Gove's children attend the same school and even identified the school by naming its headmaster.

Mr Gove's wife, Daily Mail columnist Sarah Vine, rebuked Bercow for mentioning her children

Mr Gove's wife, Daily Mail columnist Sarah Vine, was among those who hit back at the speaker over his rant.

She tweeted: 'Insult me, insult my husband - but don't bring the kids into it. Please. And thank you.'

It is the latest in a long series of scandals involving the Speaker, who has been repeatedly accused of favouring Remainer moves in the House, and recently told an audience at the Edinburgh Festival Fringe that he would 'fight with every breath in my body' to stop Boris Johnson suspending Parliament.

Bercow's full rant at Michael Gove The Speaker interrupted discussion to say: 'Order! Order! Very rude for members... order, order, order, order. 'I say to the Chancellor of the Duchy [Mr Gove] that when he turns up at our children's school as a parent he is a very well behaved fellow. 'He wouldn't dare behave like that in front of [headmaster's name] and neither would I. 'Don't gesticulate, don't rant. Spare us the theatrics. Behave yourself. Be a good boy young man. Be a good boy.' He later added: 'We know the theatrics he perfected at the Oxford Union. Not interested, not interested, be quiet!' Advertisement

Interrupting discussion in Parliament, Mr Bercow said: 'I say to the Chancellor of the Duchy [Mr Gove's title], that when he turns up at our school as a parent, he's a very well-behaved fellow.

'He wouldn't dare behave like that in front of [the headmaster] and neither would I.'

Mr Bercow - whose car has a 'B******s to Brexit' sticker in the window - then added: 'Don't gesticulate, don't rant, spare us the theatrics, behave yourself... Be a good boy, young man. Be a good boy.'

Many politicians and commentators said that Bercow's behaviour was bad, even by his standards, and that he was 'losing the plot' and 'ranting like a lunatic'.

Conservative member of the Scottish Parliament Rachael Hamilton wrote: 'There is something very unprofessional about the way Speaker John Bercow operates.

'Launching an unbecoming personal attack on Michael Gove's children is unacceptable. Taking his role beyond the parameters of respect and privacy is crass.'