Osborne warns of economic consequences of Brexit

Leaving EU would be ‘a big mistake’, warns Cameron

Events have been held in various European cities where EU campaigners have gathered and symbolically 'kissed away the hate' and to encouurage Britons to vote to stay in Europe. Video: REUTERS

Chancellor George Osborne has stepped up warnings of the threat to the economy if Britain votes to leave the EU as campaigning in the referendum resumed following the death of Labour MP Jo Cox.

The Chancellor said the hit to the economy could be "quite a lot worse" than even the International Monetary Fund (IMF) was predicting with hundreds of thousands of jobs at stake in the event of a vote for Brexit on Thursday.

For the Leave camp, Justice Secretary Michael Gove insisted Britain would be able to cope with "whatever the world throws at us" outside the EU.

However, with the latest clutch of opinion polls suggesting Remain had recovered some of the ground it had lost, Ukip leader Nigel Farage admitted the campaign had lost momentum following its suspension in the wake of the alleged murder last Thursday of Mrs Cox in her West Yorkshire constituency.

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“We did have momentum until this terrible tragedy. It has had an impact on the whole campaign for everybody. When you are taking on the establishment, you need to have momentum,” he told ITV’s Peston on Sunday.

Amid heightened sensitivity over the way immigration has featured as an issue in the campaign, Mr Farage found himself under attack from senior figures on both sides over a controversial Ukip poster showing migrants queuing to get into the EU under the slogan “Breaking Point”.

Appearing on the same programme, Mr Osborne described the poster - which has already been the subject of complaints to the police over alleged racism - as “disgusting and vile” with “echoes of literature used in the 1930s”.

Meanwhile, British prime minister David Cameron has issued an impassioned appeal for a vote for Remain, warning that leaving the EU would be the "big mistake" putting Britain's prosperity at risk.

In an article for the Sunday Telegraph, he warned that the country was facing an “an existential choice” from which there would be “no turning back”.

He said the economy “hangs in the balance”, with trade and investment set to suffer, in the event of a vote for Leave, a “probable recession” that would leave Britain “permanently poorer”.

“If you’re not sure, don’t take the risk of leaving. If you don’t know, don’t go. If we were to leave and it quickly turned out to be a big mistake, there wouldn’t be a way of changing our minds and having another go. This is it.”

In an interview with the Sunday Times, he criticised Mr Gove and Boris Johnson for urging voters to discount the advice of economic experts.

“If you were about to get into your family car and drive your family at high speed on a motorway and the mechanic said to you, ‘The brakes are faulty, the fuel is leaking, don’t get in that car’, you would listen to that expert,” he said.

“Would you take a risk with your family and get into a faulty car? You wouldn’t.”

Terrible mistake

His warning was echoed by Mr Osborne, who pointed to the latest assessment of the IMF that 440,000 jobs could be lost if Britain made “the most terrible mistake” of withdrawing from the EU.

“I say to people weighing up how to vote on Thursday. Stop and think. If there’s any doubt in your mind, don’t take the risk with an irreversible vote to Leave,” he wrote.

While Mr Gove acknowledged there were risks in leaving the EU, he insisted he did not believe a vote for Leave would plunge the country into recession.

“There are great things that Britain can do in the future as a progressive beacon. By voting Leave, we have that opportunity. People should vote for democracy and Britain should vote for hope,” he told the Sunday Telegraph.

“There are economic risks if we leave, economic risks if we remain. I don’t think there will be a recession as a result of a vote to Leave.”

With the latest clutch of opinion polls suggesting the Remain camp is regaining ground after slipping behind Leave, Mr Gove said the result was too close to call.

“Many of the arguments we have made have resonated. I don’t know because I think the result is on a knife edge. I genuinely think that the public are making up their mind at the moment. It could go either way,” he said.

In the first poll conducted entirely following the murder of Mrs Cox, Survation for The Mail on Sunday put Remain back in the lead on 45 per cent, three points ahead of Leave on 42 per cent.

Despite deep anger among many pro-Brexit MPs at the way Mr Cameron had led the Remain campaign, Mr Gove insisted he would carry on as prime minister whatever the outcome of the vote.

“I don’t want to have anyone else as prime minister other than David Cameron and if people spend their time thinking about some of this stuff then they are getting in the way of two things: one, a fair, open, fact-based referendum debate, and two, the Conservative Government continuing afterwards in a stable and secure fashion,” he said.