European Union

Leaving the EU would pose “very significant risks” to the UK, according to a business body that represents the country’s major bank and insurance firms.

The City UK commissioned the report to see what effect an exit would have on its members, who account for 13% of the UK’s economic output.

The report found that doing so would subject the UK to single market rules, damaging economic well-being and the ability for businesses to compete in the global market.

This would ultimately lead to higher prices, higher unemployment and lower growth.

Chris Cummings, chief executive of The City UK, said:

“In my experience other EU members value the UK’s commitment to economically liberal ideals, to free trade and our international viewpoint. They want the UK inside Europe. And that’s where we need to be because that’s where our economic interests are.”

The group admitted that changes had to be made to maximise the UK’s benefit from EU membership. Mr Cummings continued:

“The government has done a welcome job in setting out the need to reform the EU but now is the time to press the case and build alliances with other member states to deliver a reformed EU.”

The report was rejected by the Eurosceptic Business for Britain group who denounced the report as ‘scaremongering’, saying that similar tactics had been used in the 90s when the UK did not join the Euro.

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