If voters opt to quit the bloc in a June 23 referendum, Britain would find it “extremely difficult” to conclude trade deals with European Union nations while also trying to reach new agreements with non-EU countries, he told the BBC.
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The independent Office for Budget Responsibility predicts a rise of 9.4% over the next two years and a further 5% over the following year.
“We clearly are concerned, collectively, at the risk of Brexit, and do believe that could potentially have some economic impacts”, Morneau said.
“It hits people’s incomes, it hits the value of houses, it hits businesses and jobs”.
Treasury chief George Osborne says leaving the European Union would be a “profound economic shock”.
He will say: “New jobs in digital, financial services and energy – areas in which Britain is a world leader – will match the jobs we have already secured in transport, aviation, food and drink and advanced manufacturing”.
“Treasury analysis shows that there would be a hit to the value of people’s home by at least 10 percent and up to 18 percent”, Osborne told the BBC.
As the vote on Britain’s future in the European Union draws closer, finance minister George Osborne said his meetings with G7 counterparts underscored the gravity of the in-out decision.
“At the same time mortgages will get more expensive, and mortgage rates will go up”. Several world leaders and global organizations have echoed the concern, including US President Barack Obama and the worldwide Monetary Fund.
“The Treasury analysis shows that there would be a hit to the value of people’s homes by at least 10 per cent and up to 18 per cent”, he said, adding “first-time buyers are hit because mortgage rates go up, and mortgages become more hard to get”.
“It’s not for me to tell British people how to vote, it’s for me to explain what – as an employer of 4,000 people in the United Kingdom, somebody who has a residence here, somebody who is building two of the most expensive buildings ever built here in the United Kingdom, in London, to make this our European headquarters – what it means for our employees, and what it means for our company, and what it means for America”, Mr Bloomberg told BBC Radio Four’s Today programme.
Osborne says Britain and its people “are going to be poorer outside the European Union”. “So it’s a lose-lose situation”, he added.
German Finance Minister Wolfgang Schäuble said the G-7 members concluded that a so-called “Brexit” would be the “wrong decision”, but acknowledged that Britain’s future within the 28-member bloc was ultimately up to voters.
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The battle for votes ahead of the June 23 referendum has drawn in US President Barack Obama, EU leaders and the International Monetary Fund, prompted comparisons between the European Union and Adolf Hitler and sparked a warning about the risk of World War III.
