Britain's exit from the European Union could cause a "serious shock" to the country's economy, potentially costing it 100 billion pounds and nearly one million jobs, a business report has warned.
According to the report commissioned by the Confederation of British Industry (CBI), the exit could cost the UK economy 100 billion - the equivalent of 5 per cent of GDP - by 2020 and would lead to long-lasting economic damage from which it would never recover.
Household incomes could be between 2,100 pounds and 3,700 pounds lower if Britain voted to leave the EU, while the UK's unemployment rate, currently one of the lowest in the EU at 5. 1 per cent, would be between 2 and 3 percentage points higher, with 950,000 jobs potentially lost, said the report conducted by accountancy firm PricewaterhouseCoopers (PwC).
"This analysis shows very clearly why leaving the European Union would be a real blow for living standards, jobs and growth. The savings from reduced EU budget contributions and regulation are greatly outweighed by the negative impact on trade and investment," said Carolyn Fairbairn, director general of CBI.
"Even in the best case this would cause a serious shock to the UKeconomy," Fairbairn was quoted as saying by 'The Guardian'.
The report angered Brexit campaigners, who believe the government is trying to scare voters into supporting Britain remaining in the EU.
"Even in the CBI's skewed choice of scenarios for exit, they are forced to admit that employment and the economy will continue to grow after we Vote Leave," said Matthew Elliott, chief executive of Vote Leave, which campaigns in favour of an exit.
"The EU funded CBI are desperate to recreate the same scare stories they spread when they urged Britain to scrap the pound and join the euro. They were wrong then and they are wrong now," Elliott said.
Britain will vote on June 23 in a referendum on whether to remain in EU, a 28-member country bloc.
"If we want to take back control and strike the kind of free-trade deal the CBI refuses to even consider, the only safe option is to Vote Leave," Elliott said.
The report has come after a recent poll found that 80 per cent of members questioned in a survey wanted to remain in the EU.
A host of major British retail giants, including Tesco,
Sainsbury's and Marks & Spencer, also added their weight behind the 'Britain Stronger In Europe' campaign, warning price rises and higher inflation if UK was to leave the union.
Leading economic institutions in Britain - the Institute for Fiscal Studies, NIESR, and the London School of Economics' Centre for Economic Performance - have warned quitting the EU's single market would make the UK "financially worse off".
As many as 10 Nobel prize-winning economists spoke out yesterday saying "the economic arguments are clearly in favour of remaining in the EU," while over 5,000 scientists signed a statement saying leaving the EU would "stifle our science, innovation and jobs".
Over 1,000 academics at UK universities added: "The interests of British universities and the knowledge economy they represent, as well as the wider future of the United Kingdom and of our continent, are best served by staying In."
The momentum seems to be once again shifting behind the Remain camp as the opposing camp comes across as increasingly divisive.
One of Vote Leave's star campaigners, former London mayor Boris Johnson, accused Downing Street of pressuring business experts.
"I can't tell you the pressure Project Fear and Remain put on senior business people not to articulate their views. Everyone has an interest one way or another keeping friendly with government. I do not wish in any way to be disparaging or critical of my friends in government but it is well known there is an operation in Downing Street," he said.
Vote Leave also confirmed that it had accepted the resignation of Arabella Arkwright, a businessperson who was a Vote Leave board member, after being made aware of tweets that it said did not reflect the campaign's views.
She was forced to resign after a series of retweets of anti-Muslim material on social media.
The fallout of the far-right UK Independence Party (UKIP) poster depicting hoards of migrants queueing up to enter the UK also continues to resonate, with Vote Leave trying to distance itself from the increasingly anti-immigrant rhetoric of its campaign.
